MBS Day Ahead: Tariff Extension is Old News as Bonds Wait For Powell and Data

Posted To: MBS Commentary

The "big" news over the weekend was the announcement of an extension on US/China tariffs that were set to go into effect on March 1st. While an eventual trade deal would still be a big development for both sides of the market, the extension was only worth a modest in-range correction for bonds. The fact that the range is still so perfectly intact suggests this wasn't the news bonds were looking for. The rest of the week will stand a better chance to argue for a break of the prevailing range. There is a healthy amount of economic data, even if few reports are top tier in terms of market movement potential. Of the actual economic reports, the biggest deal is likely Friday's ISM Manufacturing report. Thursday's GDP sounds like a big deal, but keep in mind that it's in...(read more)

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