September 17, 2021

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Mortgage News

MBS Day Ahead: Cue The Data-Driven Grind (Eventually)

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Now that the Fed confirms its expected stance (closer to a slowdown, tolerant of short-term inflation, and still a lot of uncertainty surrounding the pandemic), we move on to an interim session that will provide several options for interpreting the data that the Fed may have -September meeting inform. Today’s GDP probably doesn’t deserve to be on that list. Without much deviation from the forecast, we expect trading, earnings and technicals to be driving intraday volatility towards the end of the month. We are waiting for next week’s job report for a more substantial contribution to the Fed’s guessing game. At current levels, bonds are well positioned to play a role in the drama ahead. 10-year returns of 1.3% were the lower bound of the trading range over the past decade (before Covid). Through operation … (Continue reading)

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