MBS Day Ahead: Retail Sales Takes a Swing Before Next Week’s Fed


Posted To: MBS Commentary

In the day just past, bonds managed to add modestly but meaningfully to a 2.5-day rally that's acted to keep them in a consolidation pattern. After I write the words "consolidation pattern," they're typically followed by the words "ahead of." In the current case, the 4 word phrase that's easiest to assume would be "ahead of the Fed." Sometimes, however, bonds consolidate simply because they've just moved very quickly or by a significant amount, and they just need to catch their breath. In the day ahead, we'll consider other supporting actors that could be advocating this week's consolidation in bonds. From the outset, today's Retail Sales report always deserved honorable mention. Granted, it won't end up having a bigger impact than…(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Show Buttons
Hide Buttons