Posted To: MBS Commentary

Monday and Tuesday brought a stronger start for bonds and, with it, hopes that a broader bounce was in the works. Wednesday dashed those hopes and intensified focus on today's livestream Q&A with Fed Chair Powell. Other central banks have more than acknowledged the recent rise in longer-term rates by going so far as to offer reassurance that they'd step in as needed to keep additional spikes in check. But the Fed has been almost completely silent on the topic. In fact, when Fed speakers have mentioned higher rates, it has typically been to say that they make good sense and that they stand as evidence of progress in achieving their goals. Recall that in the last few months of 2020, we were actively discussing the prospects for WAM extensions. WAM = weighted average maturity, which…(read more)

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Source: Mortgage News Daily