Posted To: MBS Commentary

This week's supply of economic data is rapidly dwindling and we've yet to see a bond market reaction worth writing home about. This morning's crop provided the most recent example. If the market's recent willingness to look past short-term inflation spikes is any indication, Friday may not be much different. That only increases the focus on next week's bigger-ticket data (specifically nonfarm payrolls on Friday). It's important to keep the context in mind though. We've moved on from the big-picture questions from the spring. At that time, rates were leveling off after adjusting abruptly higher on a combination of Treasury issuance and eventual Fed tapering. The early summer months brought an opportunity for the Fed to clarify its stance in light of improving economic…(read more)

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Source: Mortgage News Daily