Posted To: MBS Commentary
Powell Punts on SLR; Bonds Survive… Sorta Today could have been much worse even though no one will look back on it as a great day for bonds. We started out at the highest yields in more than a year after heavy-ish losses overnight. After a healthy dose volatility, the 10yr was right in line with AM levels as the Fed announcement hit. More 2-way volatility followed and it was ultimately up to Powell to set the tone. When asked about the SLR extension, he said an announcement would happen in the coming days. Markets interpreted that as “something is better than nothing,” but buyers didn’t get carried away. The rally brought Treasuries back to unchanged levels, and MBS into slightly stronger levels as of 430pm ET. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Housing Starts…(read more)
