MBS RECAP: Bond Markets Abstain; Where do We Go Now?

Posted To: MBS Commentary

Bonds undergo token correction after yesterday’s rout technicals remain precarious Fed speeches were in focus, but turned out to be fairly non-threatening where do we go now? Bond traders are singin’ Sweet Child of Mine like it’s going out of style (again). A day after a fairly sound thrashing, we’ve just been treated to an almost perfectly unchanged day with an afternoon trading range that is almost 10 times as narrow as the previous day’s trading range. It really doesn’t get any more equivocal. Chalk this up to the fact that traders were looking for answers today . They expected to get them from the Fed’s big guns: Vice Chair Fischer and NY Fed President Dudley. Both were slated to speak this morning, so obviously, they’d either drive yesterday’s nail into…(read more)

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