Posted To: MBS Commentary
By the time we finally arrive at a much-anticipated Fed day, there's not much to do in the morning hours apart from the proverbial "hurry up and wait." Or if you prefer Shakespeare, "the readiness is all." So what special providence are we pondering? The first place we'll be looking is in the text of the announcement itself for a change to the pace of tapering. Immediately after that, it's the dot plot (Fed rate hike forecasts) that will have the biggest market moving potential. It remains to be seen how big of an impact the dots might have on longer term rates like 10yr yields and mortgages. There's certainly been a disconnect between rate hike expectations and long-term bonds since Powell started talking about inflation no longer being transitory (and accelerating…(read more)
Source: Mortgage News Daily
