Posted To: MBS Commentary
Today's Fed Announcement was the first scheduled big-ticket market mover of the year since the NFP report on January 4th. With the government shutdown depriving us of data, and several other factors contributing to a sideways grind over the past few weeks, it was all the more hotly anticipated. By now, you know that it resulted in a 2-3bp gain in 10yr yields and a quarter point improvement in MBS prices, but how did we get there? It's true that markets were already expecting a dovish Fed announcement. This created an asymmetric risk that the Fed would only be as friendly as they needed to be and that rates would have been positioned too low for such a thing. As it happened, however, the Fed was noticeably friendlier than most anyone guessed. They dropped their verbiage pertaining to...(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://bit.ly/2BdrbRh
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