by        Matthew Graham

MBS Day Ahead: Empty Data Calendar; FOMC Looming

Jan 21 2014, 7:00AM

Today’s session is emblematic of most of the rest of the week.  There is no scheduled economic data and trading is just as likely to be driven by position squaring ahead of next week’s FOMC Announcement as anything else.  That tends to suggest a certain randomness in determining the direction of trading, and a reasonable amount of momentum until technical levels are hit.

As always, there are several way to look at the technicals.  In general, the best case to be made is that both MBS and Treasuries are trading near short-term resistance.  In other words, the deck is slightly stacked against them and any strength to start the week would be a good sign for the rest of the week.