MBS RECAP: Bonds Boosted by Bank of England

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Posted To: MBS Commentary

This recap won't be too terribly different from the morning update on MBS Live. In fact, that's about all the more complicated today ended up being. The Bank of England (BOE) unleashed more stimulus than markets expected, so markets rallied. It's the same old story : major central bank says it will put more money into financial markets. Financial markets like it. Specifically, the BOE didn't exceed expectations when it came to dropping rates, but officials noted the likelihood of another rate cut at the next meeting. Expectations for stimulus were, however, exceeded. The bank upped its bond buying program by 50 billion pounds and set aside 10 billion for "non-financial corporate bonds." US 10yr yields dropped instantly , though not by too terribly much at first. Over…(read more)

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