MBS RECAP: Powell Confirms Taper Timeline, But Bonds Barely Budge

Posted To: MBS Commentary

Powell Effectively Confirms November Taper Barring NFP Catastrophe Bonds reacted well to the initial Fed announcement and economic projections, but reversed course during Fed Chair Powell's press conference. Powell pulled no punches in confirming the likelihood of tapering in November unless the next jobs report were to come in significantly weaker than expected. While bonds definitely reacted to those comments, the scope of the move was remarkably contained in the bigger picture. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Existing Home Sales 5.88m vs 5.89m f'cast, 6.00m prev Market Movement Recap 08:41 AM Slightly weaker overnight as broader market had a risk-on bounce following some news on Evergrande. Yields were only about 1bp higher, but domestic investors pounced at 8…(read more)

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MBS RECAP: Powell Confirms Taper Timeline, But Bonds Barely Budge
MBS RECAP: Powell Confirms Taper Timeline, But Bonds Barely Budge

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