Posted To: MBS Commentary
Surprisingly Resilient After Fed Doubles Tapering Pace After implementing the tapering plan 6 short weeks ago, the Fed quickly found itself in a position to accelerate the pace of reductions. This was probably going to take the form of 100% increase, but there was some small chance it would be smaller. The Fed opted for the 100% increase and bonds reacted logically considering the widespread expectations. In other words, despite the seemingly traumatic news, there was only a modest mount of weakness to endure because it was fairly well priced in. Econ Data / Events Fed MBS Buying 10am, 11:30am, 1pm Retail Sales 0.3 vs 0.8 f’cast, 1.8 prev NY Fed Manufacturing 31.9 vs 25.0 f’cast, 30.9 prev Import Prices 0.7 vs 0.7 f’cast, 1.5 prev NAHB Housing Market Index 84 vs 83 f’cast, 83…(read more)
