Posted To: MBS Commentary
Here it is! The trading community's ONE guaranteed chance of the year for a 4.5-day weekend. Even though Wednesday is never officially designated as an "early close" by SIFMA, that's often what it becomes in terms of volume and liquidity. The only reason that might not be the case to a normal extent this year is the presence of the FOMC Minutes at 2pm. This provides a more detailed account of the Fed meeting that took place 3 weeks ago and thus may offer some insight to the Fed's plans for the December meeting. In short, markets want to know how likely it is that the Fed will extend the average maturity of its bond holdings–something that is net positive for rates. The economic calendar is jam-packed in a visual sense, but the market-moving power is a different story…(read more)
Source: Mortgage News Daily
