Posted To: MBS Commentary
Abrupt Sell-Off To Begin Holiday-Shortened Week The day began with confirmation that Fed Chair Powell would be re-nominated for another term. Until now, there was some speculation that Fed governor Lael Brainard would take the helm, but Biden instead nominated her to be the vice chair. Brainard is more bond-friendly than Powell. It's fair to wonder if that was the reason for today's sell-off in bonds. While it definitely had some impact early in the day, the bigger drama was associated with the takedown of 2 separate Treasury auctions on a Monday (they would normally be on Tuesday and Wednesday). Regardless of the motivations, the result is a trend that now looks more upwardly sloped. The caveat is that we always advocate taking Thanksgiving week volatility with a grain of salt. Econ…(read more)
Source: Mortgage News Daily
