MBS Day Ahead: Here’s How We Know Markets Are Anxious About Fed


Posted To: MBS Commentary

Just looking at 10yr or MBS doesn't paint too much of a picture But when we compare longer-term with shorter-term debt, things become clear Bond markets have increasingly grown 'spooked' over the past few days Today's Minutes should speak to how warranted the anxiety is Today, the Fed will release the Minutes from its most recent meeting (at the end of April–the one that helped bonds rally for the past three weeks). That meeting/announcement was broadly beneficial for bond markets and it's important to understand why. There are two overarching considerations for bond markets when it comes to the Fed's rate hike path. The first is the simple likelihood of a hike at an upcoming meeting. The second is the overall stance–more of a general sense of the Fed's rate hike…(read more)

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