Posted To: MBS Commentary

It's fashionable to criticize Fed Chair Powell for negatively affecting the bond market during his customary press conference on Fed Announcement days, but you can mark today as the 10th announcement in a row where rates moved lower versus the previous session. In my view, Powell's greatest gift today was to simply stand aside and let the market do what it was already inclined to do. In other words, bonds have been inclined to move lower in yield throughout this week's coronavirus news cycle. They took a break (i.e. underwent a bounce in levels due to technicals and positioning) from that mission yesterday, presumably (hopefully?) for some other reason than to embark on an epic bounce that took rates back up to recent highs. After all, it's not unheard of to see trends pause…(read more)

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Source: Mortgage News Daily