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MBS RECAP: Bonds Blasted By Fed's Salty Dots

Posted To: MBS Commentary

Fed's Salty Dots Rock Bonds As feared/anticipated, today was all about the "dots" (the dot plot that shows Fed members' views of the Fed Funds Rate over time). Even though Powell reminded markets, yet again, to take the dots with a big grain of salt, the sell-off was swift and severe for bonds. Powell's press conference did little to push back against the weakness and bonds moved right back to their worst levels of the day after Powell was done. There's just no other way for the Fed to say they're getting closer to tapering, and no other way for the market to react. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Housing Starts 1.572m vs 1.630m f'cast Building Permits 1.681 vs 1.73m f'cast Import prices 1.1 vs 0.8 f'cast Export prices 2.2 vs 0.8…(read more)

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