MBS Day Ahead: Fed Day. Will It Matter?
Posted To: MBS Commentary
Pound for pound, nothing has more power to move the bond market than Federal Reserve Announcements. We'll get one at 2pm today, but it remains to be seen if anyone will care. The Fed doesn't like to surprise the market–especially at times of elevated economic fragility and risk. They like to reassure markets and promote the best amount of liquidity and activity as possible. Although their self-imposed guidelines prohibit Fed members from offering public comments in the week leading up to a policy announcement, they were out in force before that. Nearly all of them sang the same tune. In general, the average Fed member has expressed several key concepts repeatedly: They could buy Treasuries and MBS more or less indefinitely. So don't worry about that well running dry. They could…(read more)