MBS Day Ahead: Yellen Speech Won’t Matter Until Next Week–Even if it Moves Markets Today

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Posted To: MBS Commentary

GDP at 8:30am won't matter Consumer Sentiment at 10am won't matter Yellen at 10:30am (and 1:15pm) won't matter All of the above–but especially Yellen–can matter next week As I like to point out from time to time, Wall Street and bond trading desks at the CME in Chicago are s taffed by human beings . With all of the press devoted to algorithmic trading in recent years, and with simple deductive reasoning in an age of ever-increasing digital technology, it's all too tempting to assume that trading can easily be handled by big racks of low-latency servers and sophisticated software programs. But that's just not the way it works . While it's true that algorithms and software play a huge role in financial markets, these digital helpers are like airplanes. They help move…(read more)

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