MBS RECAP: Fed Anxiety and Dell Make Bonds Sad

Posted To: MBS Commentary

2 things: tomorrow’s FOMC Minutes and Today’s Dell corporate bond Both put pressure on bond markets majority of weakness was in afternoon and focused on shorter-term debt That’s how we know it was more about Fed fear Bond markets were doing a fair enough job of fighting off the implications of this morning’s “as-expected” Consumer Price Index data, which continued to operate in the danger zone as far as Fed rate hike implications are concerned (Core CPI of 2.1% year-over-year). Naturally, it didn’t do too much damage considering it came in in-line with expectations. More damaging was the slow-motion panic that set in over tomorrow’s FOMC Minutes. The fact that we’re only getting the Minutes from the late April Fed Meeting keeps the volatility in check,…(read more)

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