MBS Day Ahead: Rising Rate Expectations + Falling 10yr Yields

Facebooktwitterlinkedin

Posted To: MBS Commentary

In the day just passed, bonds didn't move a ton in the bigger picture but endured an hour of whipsaw volatility surrounding the Fed announcement and press conference. The market deserves some blame for relentlessly hoping to pin down Fed Chair Powell on some assurance about the future path of rates. And while Powell doesn't know what the future holds, he also deserves some blame for not simply explaining that in more candid terms. In other words, he tried to give an answer to each question as opposed to saying "I don't know." In the day ahead, bonds will reflect on yesterday's implications as they digest the 2nd most important economic report of the week, ISM Manufacturing at 10am. Yesterday's implications were different for different parts of the yield curve….(read more)

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

Facebooktwitterredditpinterestlinkedinmail
Show Buttons
Hide Buttons