Posted To: MBS Commentary
Considering all the build up to Wednesday’s FOMC events, the rally that followed was a breath of fresh air . Not 12 hours later and bonds were already in the process of unwinding those gains. Was this some sort of cruel joke meant to antagonize the origination community? Can we catch a break or what? First February, and now this? No, Yes, Yes … in that order. It’s certainly not a joke , but neither is is serious. It’s simply a correction and corrections are necessary consequences of rallies. Without corrections, prices would have to only ever move in one direction. Even during times where it might seem like that’s happening, some form of correction is always taking place at various intervals. It’s like a law of physics. The lines of charted financial instruments are “bumpy…(read more)
Via:: MBS Day Ahead: Corrections are Necessary; Is it Over?
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