Posted To: MBS Commentary
Yesterday was obviously bad for bond markets. The shift in tone from the Fed caught many market participants off guard. Since the announcement, Fed Funds Futures have moved to price in better than a 50 percent chance of a December hike versus about a 1 in 3 chance before the announcement. While it wouldn't have been unfair to expect traders to take more time to come to terms with the surprise (read: more selling today), bond markets actually began the overnight session holding relatively steady. It wasn't until the earliest domestic trading activity began that we started to lose ground. The GDP data didn't help. Even though the headline was weaker than forecast (1.5 vs 1.6), there was a significant impact from an inventory reduction (1.44 percent). That means GDP would have been...(read more) Forward this article via email: Send a copy of this story to someone you know that may want to read it.
from Mortgage News Daily http://ift.tt/1Mwi3ZK
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