Posted To: MBS Commentary

A few hours after markets closed yesterday, news began coming out regarding a Biden aide mentioning tonight’s stimulus proposal would be in the $2 trillion neighborhood. That’s quite a bit more than the $1.3 trillion that had been making the rounds a few hours prior (the same number was thrown around more than a month ago as well). Treasuries reacted to this overnight with a whopping sell-off of 3bps. This reflects the fact that markets have largely priced in some sort of $1.3+ trillion in additional spending/relief. We won’t get a chance to any additional reaction until tomorrow’s trading session, as Biden won’t be speaking until after 7pm ET. It’s another light day in terms of economic data, with Jobless Claims already out at 965k vs 795k forecast and 784k previously…(read more)

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Published On: January 18, 2021 / Categories: Mortgage News /