MBS Day Ahead: After ECB Leaves Policy Unchanged, Markets to Focus on Draghi

Posted To: MBS Commentary

Mario Draghi is the President of the European Central Bank (ECB). He's Europe's version of Janet Yellen, for lack of a more eloquent description. That is to say, when he speaks, markets listen . They'll be listening intently this morning as the day begins with the ECB having held policy rates and bond buying timelines completely unchanged . It's not necessarily that markets were expecting any new easing measures from the ECB, but you never know what will be announced by any given central bank in the current environment. Financial markets have grown utterly dependent on central banks in order to prop up a meaningful percentage of asset prices--a fact that's evident in the following chart. Simply hearing that the ECB wasn't going to expand its easing efforts, bonds and...(read more)

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