Posted To: MBS Commentary
Today began in hilarious and somewhat glorious fashion with unnamed "ECB sources" overtly doing damage control on Draghi's comments that rocked bond markets yesterday. The "sources" said Draghi's comments were merely intended to prepare markets for a decision on stimulus later this year without making a firm commitment. Well guess what, "sources!" We have a bit of experience with "preparing markets for decreased stimulus" here in the US. The Fed crossed this same bridge in May 2013 (Bernanke actually tried to cross it in March 2013, as I discussed in way too much detail here ) and there was really no way around the fact that it was going to cause markets to freak out. We and the ECB are very lucky that the Fed paved the way for these growing pains...(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/2s33QLG
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