Posted To: MBS Commentary
Bond markets were weaker in the overnight session, following Yellen's weird speech after the close yesterday. I wouldn't have thought Yellen would depart so forcefully from last week's theses, but truth is stranger than fiction . Somehow, we've gone from global growth concerns posing domestic inflation risks to "likely to hike in 2015" and the general thesis sounding more like "everything's gonna turn out fine." It was--and still is--quite odd. Markets don't believe Yellen & Co. either. Fed funds futures show less than a 40% chance of a 2015 rate hike. Nonetheless, bonds reacted poorly at first. The interesting thing is that any response to rate-hike prospects has now been completely reversed. In other words, shorter term yields (which are more...(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/1NYIS8G
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