MBS RECAP: Fed's Offsetting Penalties Leave Bonds Little-Changed

Home / Blog / MBS RECAP: Fed's Offsetting Penalties Leave Bonds Little-Changed

Posted To: MBS Commentary

The overnight session was very quiet for bonds with most major markets closed for various holidays. The first meaningful movement followed the ISM Manufacturing report's major miss (52.8 vs 55.0). This was the lowest since October 2016 and several internal components were at longer-term lows as well. Bonds rallied several bps and then locked in to a sideways approach before the Fed. The announcement itself was slightly dovish . The Fed removed its reference to energy prices being an explanation for low inflation. It retained its "patient" verbiage, and it didn't directly mention that foreign economic risks had subsided. Bonds rallied a bit more as a result. But during Powell's press conference, the Fed Chair said that there was indeed slightly less risk posed by foreign...(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...

ee993434 2292 4063 aeb3 129b1d151501 25370445 8e4c 444a a5f0 1a2a7462822f 89ddb187 e920 4b48 9b13 916a3831f0f6 0cda3166 d994 4179 ba1c 9f248831d049 a279d7f8 ce7a 474a b177 21d45d1092f7 f6d91aaa 3a73 4376 8cea 0a71c0c25101 f54d401d cac2 466c bfe4 517bfd6ae116 21ec0572 0784 45d1 bb23 c4c18d4157a9 015b85e8 5d77 4db9 bb87 02f8b8b47fcc b3eb12cd 1aca 477c 8af1 fc937fa4eb7f 78f9961f 457a 4da2 b7a7 9aaeba67cb91 23a76911 6b65 4e4c a859 1a7fb897c2c4 e4882880 7cb2 43cd b1d8 4ee1c09030a3 9efb7abe d7d1 4106 a1fb 715f2868e765 4f4dc68f 98b9 47f9 af52 f3e30ac0cae2 2622ef93 0c74 4769 a063 f9d40ecc03f7 9b1c3e0e b3e4 428f b846 22c79862d0eb 96a8cacb be6a 44b3 8962 be2e5e7af4e3 a9d49898 6b62 4faf b288 4e2448ac5f3f 908319fa 3fce 4178 a91d 1ffaf603a561 d7a8d077 6d4d 4aa6 9e08 59b7eabe05fb 0bdbe92f 05b9 4fdb 9dd0 ceea70acea98 32916e43 5787 4098 8e6d b20045481169