MBS RECAP: Fed Statement Not Pessimistic Enough For Some Traders


Posted To: MBS Commentary

Today's Fed announcement turned out to be a dud . It's getting headline treatment here based solely on street cred. In and of itself, it could scarcely compete with today's AM economic calendar. Of particular interest was the Treasury's quarterly refunding announcement. Normally a sleeper of a market mover, the refunding announcement was more closely scrutinized this time around for two reasons. First, traders wanted to see if there would be any increase in Treasury issuance to offset new spending plans. Beyond that, the announcement served as an opportunity to debut the longer-term bonds that Mnuchin has mentioned on several occasions recently. As it happens, the longer term bonds were mentioned, but they weren't announced outright (to paraphrase, they're "currently…(read more)

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