The municipal bond market (MUB, top chart) and the
mortgage bond market (MBB lower chart) have both broken support as a
result of the recent Fed moves. But both of these moves were have been
telegraphed for the last 9-12 months by the declining MACD. Also note
the both have bounced backed fairly strongly this week as traders have
clearly found some degree of value in the levels from last week.
point to this chart is that when we pull back the lens to the weekly
charts, we notice that the panic caused by the Fed's announcement was a