Posted To: MBS Commentary

Bonds have been consolidating aggressively for an entire month . 10yr yields have been perfectly contained between 0.63 and 0.73 with one brief occasion following Fed Chair Powell's Jackson Hole speech. Actually, the volatility on that day had more to do with the release of the Fed's updated inflation framework, and it was this, more than anything, that set the stage for the consolidation leading into the current week. Why? The Fed is obviously feeling a few things: They feel like they would have done things differently in the past few years if they knew then what they know now. Specifically, they have expressed some remorse about raising rates too quickly and/or too soon. Hindsight is definitely 20/20 in that regard considering popular opinion was that the Fed had waited too long to…(read more)

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Source: Mortgage News Daily