MBS Day Ahead: What Can The Fed Do To Bonds Today?


Posted To: MBS Commentary

First thing's first: the Fed will almost certainly hike today. I suppose we can't ever be truly certain of a particular outcome of a Fed meeting, but this is as certain as markets ever get on the topic. Based on market expectations and the recent Fed communications, there really wouldn't be a way for them to explain foregoing the opportunity to hike here. The possibility doesn't merit further discussion. If you hear anyone suggest the Fed won't hike, the appropriate responses are as follows: "Hmmm… well, they have surprised us with how dovish they've been in the past, but I don't think many people believe today will be one of those days." "Don't be daft, man!" "I'm disappointed that you haven't at least offered to share the…(read more)

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