Posted To: MBS Commentary

Yesterday brought a nice little rally in response to a surprisingly rate-friendly press conference with Fed Chair Powell. The counterpoint to that conclusion is seen in the chart I posted in yesterday's recap. Specifically, bonds began the day rallying and were in the midst of a linear trend toward lower yields when Powell's press conference briefly took yields below that trend. They ultimately returned to the trend by the end of the day. My efforts to de-emphasize the significance of the Fed (and NFP before that) are not without a solid reason. Yes, these events can and will cause reactions on the day of their release–especially when they surprise markets. But unlike the average past example (especially before mid 2019), they haven't been up to the task of creating lasting momentum…(read more)

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Source: Mortgage News Daily