MBS Day Ahead: At Risk of That Same Old Equivocal Feeling

Posted To: MBS Commentary

To be sure, with mortgage rates where they are, 'sideways' isn't necessarily such a bad thing. From a market-watching perspective, however, we're quickly finding ourselves at risk of falling back asleep again. The end of August was great for bonds with the China-inspired market panic. September was almost exclusively flat with the exception of a last minute puckering ahead of the Fed (i.e. yields moved quickly higher last Tuesday). The post-Fed move was strong and it matched the rhetorical thrust of the Announcement and Yellen's press conference. But then yesterday's trading threw a wrench in the works . It wasn't the end of the world, by any means, but it was enough weakness to derail the post-Fed trend. In fact, it left both stocks and bonds very much in the middle...(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/1KKdGYj