MBS RECAP: Despite Strong Data, Bonds Remain Focused on Fed

Home / Blog / MBS RECAP: Despite Strong Data, Bonds Remain Focused on Fed

Posted To: MBS Commentary

Bonds began the day in weaker territory this morning, and they didn't need anyone to twist their arm in getting there. That was our first clue that traders are simply positioned extra defensively ahead of tomorrow's FOMC events (announcement, forecasts, and press conference). Subsequent clues arrived throughout the day as follows: 1. Consumer Confidence was exceptionally strong, yet produced no visible reaction in bonds. This suggests traders had priced in their pre-Fed defensive positioning and weren't keen to move far from there. 2. Similar story with the 5yr Treasury auction. It was weaker than expected, which argues for bond market weakness, yet we're ending the day right in line with morning levels. As always, keep in mind that tomorrow's volatility isn't necessarily...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.



Source: http://www.mortgagen...

dab3a954 4dee 47a8 938a 092c457f2016 3e9460b4 a485 4d00 871e bb0b00b3bca9 a386749a 3cb9 4f0a 8430 914da859e14b 6634322d 0b33 4443 bf12 9d78409527cc 075d4fa5 d480 42b6 bd62 dc87d4c1ed2f f8c56dfc 0a2b 48be 9c67 967323b245bb 6cb4cde6 ca0a 47e9 85d0 a0a55f6bb28e a3cf0a71 a65a 47a0 9dc8 d2fffceeda4b a47897cb 12e2 46de bdc6 1702272a5b6b ac8bc145 d1db 4123 901e 274d7da384a2 9734f2f9 1364 4ae1 922a c4ca90a5b2b6 15c48740 e5b1 4920 a23b 1946fe1b710f edadb7fc 14ae 4c52 a967 4b8b52e6d305 1e7cec84 ad1e 43c5 a8d5 80594544f5e2 0fd31278 04f5 4034 af30 04f938955a6b 8cb5b0c5 aff0 4fc1 8032 449a71fe5603 0f4a03bb de9c 402f b20a d48b6fa9faf2 ada11344 f2c4 4629 9155 bcf117c1b84c 6dbabc13 54d3 4ecd 8eb6 7b5dc3880b28 e9f577e7 f0ea 4700 8639 f56f0133f0ec 474bcbf3 ac33 49b4 ac48 a7840d4cbaa0 d91d7432 3f00 414e 8ba8 eb4eea65097a 5f35c182 5594 45d9 9bce 8f4df6c892de