Posted To: MBS Commentary

Today's only real significant market mover is/was the ECB Announcement and press conference. They weren't expected to change policy, but markets were curious to get ECB Pres Lagarde's take on bond buying. In short, the bank remains strongly committed to the original pace of asset purchases. When Lagarde finished the press conference without saying anything discouraging for bonds (i.e. "no whammies"), the reaction was swift and obvious. This is helping bond markets remain strongly committed to the recent, lower-yield trading range marked by lows of roughly 1.53%. The more important accomplishment, however, has been the steady move lower after hitting the 1.75% ceiling. A close second would be the pivot below the 1.62% technical level. Lastly, we can also read some positivity…(read more)

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Source: Mortgage News Daily