Posted To: MBS Commentary
The past two trading sessions have been highly informative for bond markets. As we’ve been discussing almost incessantly, there is good reason for bonds to be more focused on economic data at the moment. This has to do with the fact that the last jobs report joined a slew of other weak economic data to cast doubt on the advisability of the Fed raising rates. At the same time, we’ve heard from several Fed speakers and even Mario Draghi regarding justifications for a Fed rate hike that transcend economic data. That leaves us with the uncomfortable task of sorting out whether or not the Fed would actually be dissuaded by bad economic data or whether they’re hell bent on hiking simply to prevent some perceived risk to financial stability. There are so many dueling banjos in this regard…(read more)
Via:: MBS Day Ahead: Economic Data Colliding With Technical Resistance
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