MBS Day Ahead: Yellen Speech Won't Matter Until Next Week--Even if it Moves Markets Today

Posted To: MBS Commentary

GDP at 8:30am won't matter Consumer Sentiment at 10am won't matter Yellen at 10:30am (and 1:15pm) won't matter All of the above--but especially Yellen--can matter next week As I like to point out from time to time, Wall Street and bond trading desks at the CME in Chicago are s taffed by human beings . With all of the press devoted to algorithmic trading in recent years, and with simple deductive reasoning in an age of ever-increasing digital technology, it's all too tempting to assume that trading can easily be handled by big racks of low-latency servers and sophisticated software programs. But that's just not the way it works . While it's true that algorithms and software play a huge role in financial markets, these digital helpers are like airplanes. They help move...(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/1sC5ZNZ