Posted To: MBS Commentary

Fed Chair Powell will be in the hot seat again today, only this time in the form of congressional testimony on the CARES Act. The prepared remarks for that speech are already out and had no impact on markets (yesterday). So if we're to see any major reaction today, it would be up to some riveting question from congress to draw out a new angle on what has come to be a very predictable message. Meanwhile, bonds are attempting to solidify the second day of gains this week. Even if they succeed, there's still reason for caution (they've succeeded in the same way on 7 out of the past 9 Tuesdays). Normally, I strongly discourage the examination of such patterns because markets are so inherently unpredictable. This pattern, however, is worth considering as a cautionary tale, however. It…(read more)

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Source: Mortgage News Daily