MBS Day Ahead: Housing Data and The Fed

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Posted To: MBS Commentary

In the week just past, the bond market began by threatening to bounce toward higher rates after an impressive, 5-week rally to the lowest levels since 2017. The first sign of support appeared without any provocation other than "relatively higher yields." This is a good thing because it indicated traders were looking for an opportunity to step in and buy bonds without any additional motivation. They were looking to reinforce the range as opposed to ride a wave of momentum back to weaker levels. In the week ahead, the bond market will get a more compelling cue regarding a potential range breakout. If there's one event that stands out, it's Wednesday's Fed announcement . This is also one of the meetings that includes updated economic projections (i.e. Fed member rate forecasts…(read more)

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