MBS RECAP: Markets Continue Coming To Terms With Yellen

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Posted To: MBS Commentary

markets continue repricing rate hike expectations shorter duration debt wins (2yr Treasuries beating 10yr) MBS are shorter duration than 10yr, so MBS outperformed, ending green while 10's lost ground Data was a non-event In most every way, today was just another day for financial markets to digest yesterday's Yellen comments and adjust trading positions accordingly. Yellen said a lot in her speech, but the most succinct translation is: "we're not hiking in April and possibly not even in June. We're still pretty concerned about the global economy even though it's not part of our mandate. We don't seem to care if that confuses you, and we sorta feel like you should just 'get it.' We can foresee a situation where things get even worse and we have to take rates…(read more)

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