Posted To: MBS Commentary
Bonds tanked today and at first glance, there weren't any great explanations as to why. But headlines quickly surfaced regarding the European Central Bank coming to a consensus on the need to reduce asset purchases. What the heck does that mean?! The narrative is actually pretty simple. Remember the taper tantrum in the US? There were some hints about a European version earlier in the month when Draghi abstained from promising an extension of the European Central Bank's (ECB) bond buying program--something he's normally fairly happy to do when we're getting this close to the end of the allotted time. This could be the ECB's way of testing the waters for a more official statement about their intent to taper asset purchases. Another step may have been taken today in the form...(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/2d15kRr
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