Posted To: MBS Commentary

Bonds Take Tapering Mostly In Stride Today was the day that the Fed announced a reduction in the pace of its bond purchases without the bond market undergoing a reaction that was outside the realm of any other trading day. Or how about this tidbit: less than 2 hours later and MBS prices are higher than the were before the Fed. So while there was certainly some volatility between 2-3pm, it all came out in the wash for MBS, and the same was almost true for Treasuries. Econ Data / Events Fed MBS Buying 10am & 1130am ADP Employment 571k vs 400k f'cast, 523k prev Market Movement Recap 08:24 AM Bonds were closed in Asia, then stronger early in the EU session. Modest bounce back since 5am with no impact from ADP. 10yr now down 1.2bps and MBS roughly unchanged. 11:32 AM Quick bout of selling…(read more)

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Source: Mortgage News Daily