MBS RECAP: Why Bonds Tanked After Powell (And Why It Was No Surprise)

Posted To: MBS Commentary

Powell Does Exactly What He Was Supposed To (And Bonds Didn't Like It) From this AM: "some recent analysis has GREATLY overestimated the Fed's willingness to "twist."" In simpler terms, there was some buzz about Powell saying the Fed might sell short-term bonds and buy more long-term bonds. That buzz was silly this morning, and Powell confirmed the silliness by passing up 47 opportunities to say anything remotely indicative of twisty aspirations. In other words, sorry long-term bonds… the Fed isn't going to save you. The only surprise here today is the revelation of just how much of the bond market expected something else (as evidenced by the 1.47 to 1.54% sell-off following Powell). SIGNIFICANTLY more detail and explanation available in this commentary piece…(read more)

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MBS RECAP: Why Bonds Tanked After Powell (And Why It Was No Surprise)
MBS RECAP: Why Bonds Tanked After Powell (And Why It Was No Surprise)

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