Wednesday, November 29, 2017

MBS Day Ahead: Starting Out at a Disadvantage; Yellen Still Matters

Posted To: MBS Commentary

Right at the start of trading today, bonds took a hit from Fed comments. Although she's soon to be replaced, Janet Yellen's thoughts on the economy still matter. In her prepared remarks for today's congressional testimony (her last), she said the US and global economic expansions have been "increasingly broad-based," and that the Fed still sees inflation as transitory. Combined with overnight weakness in Europe, this was enough for bonds to start their day in their weakest shape in several weeks. The abrupt losses make for a noticeable shift in momentum according to some technical metrics. In the following chart, the rightmost candlestick is today's trading so far (including overnight). A red candlestick means yields are moving higher. Thus, today's yields have...(read more)
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from Mortgage News Daily http://ift.tt/2BlK9ms

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