MBS Day Ahead: Waiting On Powell Testimony

Posted To: MBS Commentary

The Fed's messaging is in a state of flux to some extent, as they move away from the "full speed ahead until further notice" and toward an evolving conversation about tapering asset purchases. As always, asset purchases are a critical consideration for the bond market. Is it better to have more info, more frequently on that topic? Yes and no. It limits the risk of a big 2013-style taper tantrum, but it makes for more volatility between now and the official announcement. While it's not clear what would have changed much since last week, we'll hear from Powell again today at 2pm ET as he testifies on the Fed's pandemic response. When compared with the bigger-picture range in bonds, short-to-medium term volatility has a fairly limited range in which to operate. With 10yr…(read more)

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MBS Day Ahead: Waiting On Powell Testimony
MBS Day Ahead: Waiting On Powell Testimony

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