Posted To: MBS Commentary
With the Fed having confirmed their expected stance (closer to tapering, tolerant of short-term inflation, and plenty of pandemic-related uncertainty remaining), we move on to an inter-meeting period that will offer several opportunities to interpret the data that may inform the September Fed meeting. Today's GDP probably doesn't deserve to be on that list. Absent a huge departure from forecast, we expect month-end trading, earnings, and technicals to drive any intraday volatility. We're waiting on next week's jobs report for a meatier contribution to the Fed guessing game. At current levels, bonds are well-positioned to play any part in the upcoming drama. 10yr yields of 1.3%-ish have been the lower bound of the trading range for the past decade (before covid). By operating…(read more)
Source: Mortgage News Daily
