MBS RECAP: ECB Surprises Markets, But Bonds Favored It

Posted To: MBS Commentary

We knew the ECB (European Central Financial institution) was going to have to address its bond purchasing application soon, for the reason that it expires just after September. Several speakers had alluded to the chance that it would be tackled in nowadays&#039s announcement. Markets took that to suggest that Draghi would finally discuss about the possible tapering announcement at the subsequent meeting. As a substitute, the ECB just went in advance and pulled the result in –numerous months in progress. In other text, they will in truth go on purchasing bonds through September. They&#039ll purchase half as quite a few in excess of the subsequent three months and then be completed by 2019. This eventuality was somewhere in the realm of the current market&#039s expectation, even if we weren&#039t preparing on confirming it so soon. The early announcement prompted a bit of bond current market weak point at initial…(study far more)

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