MBS RECAP: Bonds Rally After CPI Gives Fed The Week Off

Posted To: MBS Commentary

Bonds Rally After CPI Gives Fed The Week Off Today's Consumer Price Index (CPI) was one of the only big ticket economic reports left before next week's Fed announcement, and perhaps the only one that could have meaningfully impacted the Fed's decision-making process. By coming in tamer than expected (and with several notable sectors such as used autos being down 1.5%), today's result effectively tells the Fed it can take next week off. Had today's report been significantly stronger than expected, markets may have panicked for fear that the Fed could announce some measure of reduction in its rate-friendly policies. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Core CPI (y/y) 4.0 vs 4.2 f'cast, 4.3 prev Market Movement Recap 08:41 AM Slightly weaker overnight with…(read more)

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MBS RECAP: Bonds Rally After CPI Gives Fed The Week Off
MBS RECAP: Bonds Rally After CPI Gives Fed The Week Off

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