Posted To: MBS Commentary

Fed Minutes Largely As Expected; No Major Drama For Bonds After weathering the storm of this morning's data, the bond market turned its attention to the afternoon's release of the Minutes from the most recent Fed meeting. While there were comments about the potential to accelerate the pace of tapering (thus pulling forward the potential rate hike timeline), they were only registered among a few of the meeting participants. Treasuries mostly yawned at the data, but MBS are underperforming. Liquidity is a factor here as well as the flatter yield curve on the day. From here on out, liquidity issues add a higher degree of variability to MBS prices. This risk won't subside until next week at the earliest. Econ Data / Events Fed MBS Buying 10am, 11:30am, 1pm GDP (q3, prelim) 2.1 vs 2…(read more)

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Source: Mortgage News Daily