MBS RECAP: LLPA Impact vs Powell Speech. Time to Lock?

Posted To: MBS Commentary

LLPA Impact vs Powell Speech. Time to Lock? Much has been made (by news media… not bond market participants) of Powell's Jackson Hole (virtual) speech on Thursday. After all, a rethink of the Fed's "framework" sounds like a big deal, right? The only catch is that they've been talking about that for years. Powell will have a tough time surprising the market tomorrow, even though anything's possible. Meanwhile, the removal of the recently-added LLPA is an actual and massively important consideration for loan pricing, locking, and floating. Econ Data / Events 20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th) Durable Goods 11.2 vs 4.3 f'cast, 7.7 prev Cap-ex (excludes defense/aircraft) 1.9 vs 1.9 f'cast, 4.3 prev 5yr auction: reasonably strong …(read more)

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