Posted To: MBS Commentary

Does inauguration day matter for the bond market? Not as such, no. To be sure, the changing of the guard in D.C. is indeed a big deal for the bond market, but only because the senate flipped to democratic control as well. The inauguration is just ceremony marking a transition that's already priced into the bond market. What about another incident like the storming of the capitol last week? If that incident was any indication, bonds won't be too interested in that sort of drama unless it's far worse or actually has a lasting, disruptive effect on the government. Bottom line: it's a day to get through before the bigger market movers arrive. Traders are far more interested in seeing the details of the next iteration of stimulus and whether or not it can pass the Senate. As for…(read more)

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Source: Mortgage News Daily