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MBS RECAP: Fed, SOTU Go Without having a Trace

Posted To: MBS Commentary

Keep skeptical about simple answers in economic information! Here&#039s a huge example. Considerably has been built of the inventory market place currently being on the edge of a enormous correction dependent on climbing curiosity costs. That&#039s not essentially a terrible strategy, but it is defective logic to presume it will travel each individual small move. For occasion, just after now&#039s woefully inconsequential Fed announcement, bond yields rose at first just before settling back down to unchanged levels for the 3pm CME shut. The level spike was seized by inventory commentators in purchase to explain late working day inventory weak spot. Quite simple, correct? The only problem is that the afternoon decrease in costs coincided with extra losses in stocks. In other phrases, headlines about stocks giving up their gains owing to bond yields climbing publish-Fed are wholly worthless…(examine extra)

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