MBS OPEN: Perspective on Bond Market Weakness. Reaction to Politics
January 28, 2010 – 5:41 amPosted To: MBS Commentary
All was good in the rates market leading up to 215pm yesterday. Rate sheet rebate was holding close to month over month bests, 10s were quietly bouncing back and forth around 3.62% and the FN 4.5 MBS coupon continued to move in a range. This was all occurring in slow/thin trading conditions as market participants were reluctant to venture too far from recent pivot points ahead of major market moving news. Then came the FOMC statement at 2:15pm. While the text and language of the release held few surprise, there were hints of continued positive stabilization progress, for example, instead of saying "economic activity has continued to PICK UP", the Fed communicated that "economic activity continued to STRENGTHEN". The Fed also made it clear that they intend to carry out plans...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.