Posted To: MBS Commentary
Fed Hints At Tapering, But Bonds Don't Care Why are rates lower despite the Fed announcement taking another step toward tapering? It's a trick question actually. True, the Fed did tweak some verbiage to grease the skids for tapering, but that was widely expected. During the press conference, Powell did a good job of managing market expectations and clearly reiterating the economy is still "a ways away" from justifying a policy shift. Traders basically knew that. Confirmation, combined with uncertainty created by the rapidly changing pandemic landscape (delta, case counts, vax efficacy, masks, etc.), was more than enough to keep rates on a friendly course. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Market Movement Recap 08:28 AM slightly weaker overnight despite weaker…(read more)
Source: Mortgage News Daily
