Posted To: MBS Commentary
Bonds Circle Weekend Wagons as Fed Day Looms This week was a bit of a barn burner for the bond market with 10yr yields falling at their fastest pace since the start of the pandemic. It’s not too troubling to see the modest weakness creep in on Friday. This could be explained by something as simple as traders exiting shorter-term long positions in an attempt to get neutral for next week’s big-ticket events. Chief among those will be Wednesday’s Fed Announcement (which includes updated economic projections and “dots”). Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Consumer Sentiment 86.4 vs 84 f’cast 1yr Inflation expectations down 0.6% 5yr Inflation expectations down 0.2% Market Movement Recap 09:43 AM flat for most of the overnight session, then modestly weaker…(read more)
