Posted To: MBS Commentary

Increasingly Defensive Ahead of Jackson Hole Bonds sold off moderately and steadily all day without any clear paper trail back to newswires, data, or events. Could it be an evolving narrative on covid? Typical hesitation on a Treasury auction week? Random movement inside a broadly narrow range? Or is this a simple move to the sidelines ahead of this Friday’s Powell speech? While all of these factors could be in play to varying degrees, we know the bond market is a bit anxious to hear what Powell has to say. It’s not that fireworks are guaranteed. Traders are simply preparing for volatility (for better or worse), and by moving up to the mid-point of the 2-week range, they’re arguably in a better position for such things. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Market…(read more)

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Published On: August 24, 2021 / Categories: Mortgage News /