Posted To: MBS Commentary
Fed Confirms Market’s Fear; Bonds Manage to Hold This Week’s Range The last time bonds sold off for 6 consecutive weeks, it was 2009 and the low rate trends spurred by the financial crisis were in their infancy. This time around, the 6 weeks of pain is more of a confirmation of the market’s mission to price-out the pandemic. The Fed confirmed something too: that traders were right to be wary about their SLR intentions. There will be no extension. Fortunately, it seems that the market had done enough selling to prepare for this eventuality, and bonds didn’t freak out too much. That said, they didn’t rally either… Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Market Movement Recap 09:12 AM Stronger overnight, then a big blast of selling after news that the Fed’s…(read more)
