Posted To: MBS Commentary
Considering 10yr auctions and FOMC Minutes typically happen on Wednesdays, it’s not uncommon for them to be sharing the stage. In today’s case, they were the only relevant items on the schedule. While they certainly caused a bit of near term volatility, not only did that volatility play out on a micro scale, but it also carried trading levels back toward ‘unchanged’ by the end of the day. In their defense, both of these key players did as little as possible to be interesting. The 10yr auction was right down the middle in terms of the awarded yield, bid-to-cover, and foreign participation. The Fed Minutes similarly offered no surprises with some members still favoring an earlier rate hike and others still favoring late 2015 or even 2016. Markets were consequently left to draw…(read more)
Via:: MBS RECAP: The Most Boring FOMC Minutes + 10yr Auction Day
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