Monday, October 30, 2017

MBS RECAP: After Strong Start, Bonds Get Stronger on Tax Reform Ambiguities

Posted To: MBS Commentary

Bonds began the day in stronger territory, generally riding a wave of momentum from late last week on fresh speculation that Trump would nominate Jerome Powell to Chair the Federal Reserve. Of the two frontrunners, Powell is seen as more accommodative. As such, stocks and bonds tend to enjoy it when Powell's chances are looking up. US and German inflation data helped facilitate further bond market improvement in the morning hours, not to mention traders simply being lined up to buy more bonds after certain technical benchmarks were broken (like 2.42% in 10yr yields). The morning's biggest news and biggest market mover concerned tax reform. Sources were cited saying that the corporate tax rate of 20% could be phased in by 2022, as opposed to being implemented immediately. Any knock on...(read more)
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from Mortgage News Daily http://ift.tt/2z44cYC

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