Posted To: MBS Commentary

Powell Sticks to Script. Bonds Like It Fed Chair Powell's Jackson Hole speech has come and gone without causing any major drama. He held very close to his recent script which acknowledges the prospect of tapering in the near future while remaining dependent on just a bit more data and track record with the delta variant. Bonds had positioned defensively ahead of the speech and are simply pricing out some (not all!) of that defensiveness heading into a big week of econ data. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Core PCE Inflation 3.6 v 3.6 f'cast/prev Market Movement Recap 08:48 AM refreshingly calm overnight with modest additional gains after the as-expected inflation data. 10yr down almost 3bps at 1.326% and 2.0 UMBS up an eighth. Powell on deck at Jackson Hole in a…(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Source: Mortgage News Daily