MBS RECAP: Huge Bond Market Reaction to Fed Minutes


Posted To: MBS Commentary

Anxiety was growing yesterday about the Fed Minutes surprising Bonds weakened The Fed Minutes surprised Bonds weakened some more This could be a big deal Every now and then a Fed-related revelation comes along that forces markets to "reprice" the risk of a certain monetary policy outcome. In the current case, the outcome on everyone's mind is the Fed's next rate hike. Until yesterday, markets weren't too concerned about it, and that was a concern for the Fed–so much so that several Fed speakers have lamented the fact recently. Yesterday marked a turning point for the market's dismissiveness over Fed rate hike potential after both Williams and Lockhart–2 Fed presidents not known for fringy ideologies–essentially said a June hike was more possible than markets realized…(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Show Buttons
Hide Buttons