Market Selling...

This chart may not show it (because I printed it before the sell off), but our market is currently selling of and down 5 ticks on the day. Sell offs always bring worse pricing because banks work very hard to protect their profit margin, expect worse pricing this afternoon unless we some type of recovering. Unfortunately this sell off looks like it is going to last at least throughout the day.

It is my opinion that this sell off is primarily due to the rising treasury yield. As you can see in my graph, I have identified a specific range that would pose problems for our market if treasury yields broke through... this is what is happening and why we have seen a losses today.

Follow the arrow if you want to know where our market has gone since this picture.


All things considered, rates are still excellent, and this may turn around tomorrow. Right now, my focus is on treasury yield. With strong support at 3.000% yield, we need something that draws investors to this market dropping the yield below this price point. If this happens, better rates are on the way. If we continue to trade in this range, rates will remain static; should yields rise, watch out rates will rise.