Posted To: MBS Commentary
New Week, New Sense of Urgency The new week wasted no time in differentiating itself from the previous week as bonds sold off somewhat briskly this morning. This was a known risk given the motivation for the recent gains. Specifically, short-covering rallies leave themselves open to these little reversals. The bigger question of "where do we go from here" may depend on the incoming data and especially Wednesday afternoon's Fed announcement/forecasts. Despite the early selling pressure, bonds offered some reassurance in the afternoon by holding calmly under 1.50%. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Consumer Sentiment 86.4 vs 84 f'cast 1yr Inflation expectations down 0.6% 5yr Inflation expectations down 0.2% Market Movement Recap 09:22 AM Roughly unchanged overnight…(read more)
Source: Mortgage News Daily
