Posted To: MBS Commentary
Bonds began the day in inconsequentially stronger territory and soon moved to the worst levels in a week leading up to the 5yr Treasury auction. The auction's stats were much stronger compared to recent averages. This would normally bode well for bond markets (and today was no exception), but we might be justified in reading a little bit more positivity into the results considering the auction occurred in the shadow of the Fed Minutes set to hit the wires just 1 hour later. The Fed Minutes turned out to be helpful in their own right. Not only did the Fed express some rate-hike hesitation, but they reinvestment discussion seems to have evolved in a less terrifying way than some bond traders had imagined. Specifically, there was no mention of outright bond sales (a particular concern for...(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/2qXJHXx
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