Posted To: MBS Commentary
Today's focus was understandably on the Fed Announcement, and indeed, most of the movement followed it. But interestingly enough, the biggest volume spikes occurred at other times, and that helps explain the day's paradoxical movement. So what's the paradox? Quite simply, it made very little sense to see as much of a rally as we saw based on the content of the Fed Announcement. Why? Because the announcement was utterly inoffensive. If you'd commissioned a thousand market participants and Fed followers to draft a consensus estimate for the Fed, it would have looked exactly like today's actual announcement. In short, there was nothing even remotely resembling a surprise. Where'd the rally come from then? Bear with me here. The rally came from yesterday's sell-off....(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/2tKBaMu
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