Posted To: MBS Commentary
It would be nice if yesterday’s European Central Bank announcement had come with an instruction manual that let markets know how to react and at what pace. I haven’t seen the analytical community as confused and noncommittal in quite some time. A lot of normally highly-convicted folks are instead in “wait and see” mode . I’d mostly put myself in that same camp, but I’ll admit that the prospect of the ECB finally getting some form of sovereign debt buying through the tangled Eurozone political system (for now, anyway) is impressive, and–at the very least– symbolically important as far as market stability is concerned. Will this be THE magic pill that brings about the big bounce in the European economic trajectory? Almost certainly not. But with that in mind, it’s…(read more)
Via:: MBS Day Ahead: Bond Markets Set up Technical Defenses After ECB Whipsaw