MBS RECAP: Draghi Manages to Disappoint Everyone With One Phrase

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Posted To: MBS Commentary

ECB unveils bigger-than-expected package of rate cuts and QE purchases Then Draghi says the magic words (in a nutshell: no more rate cuts) Stocks and bonds both pitch a fit Stay classy, financial markets For a day with a ton of volatility and a seemingly large supply of moving parts, this one is pretty easy to boil down . Everything was going according to the ECB's plan in the morning (that's the European Central Bank, by the way, and Draghi is the guy in charge): a larger-than-expected campaign of policy accommodation was just announced, stocks were rallying, bond markets were overcoming their initial jitters, and the Euro was going right where the ECB wanted it: down, down down. Then Draghi said something very logical in a stupidly candid way during the press conference that began…(read more)

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