Posted To: MBS Commentary

Questionable Taper Talk Conclusions Result in Heavy Selling The word "heavy" requires some qualification. In today's case, it refers to the quickest pace of weakness seen since last Wednesday after the CPI report. In the big picture, today is a very light example of "heavy." A quick spike in yields makes sense when we consider taper talk as the motivation, but the Fed didn't really say anything remarkably new–especially not when compared to recent Fed speeches by a few of the more hawkish members. Nonetheless, markets ran with it. No one wants to be behind the 8-ball for a taper tantrum, but let's hope this moves in the logical direction of being a false start. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Market Movement Recap 09:22 AM Noticeably weaker…(read more)

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Source: Mortgage News Daily