MBS Day Ahead: Fed Day. Do We Care?
Posted To: MBS Commentary
Today's Fed announcement isn't likely to contain any major revelations for the bond market, nor to cause any significant volatility. Logical conclusion based on recent comments or famous last words? One can never be sure when it comes to the Fed. There's always a small risk that the Fed will surprise us, even when it doesn't seem likely. What we CAN be sure of is this: to whatever extent any of the this week's Treasury weakness is attributable to pre-Fed apprehension, an as-expected announcement could be helpful this afternoon. To be clear, this isn't a prediction. In fact, I don't think yesterday's weakness had much–if anything–to do with the Fed. They've been very clear about their current policy stance and unless they've drastically miscommunicated…(read more)