MBS RECAP: Nice Recovery Today, But Is It a Trap?
Posted To: MBS Commentary
Nice Recovery Today, But Is It a Trap? If the Fed is doubling down on its inflation goals, it makes sense for bonds to be afraid–at least a little bit. But with today seeing yields hold the same ceiling as yesterday, are we already in a position to ask "was that it?" Or are markets just waiting to sell more bonds in the week ahead? Econ Data / Events 20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th) Core Annual PCE Inflation 1.3 vs 1.2 f'cast , 1.1 prev Chicago PMI 51.2 vs 52.0 f'cast Consumer Sentiment 74.1 vs 72.8 f'cast Market Movement Recap 08:24 AM Bonds added to yesterday's weakness during Asian trading hours, but found their footing and pushed back into positive territory in the European trading session. No major volatility on either account….(read more)