Posted To: MBS Commentary
Relative to its potential, today’s release of ECB QE details turned out to inspire only modest volatility. Compared to an average day, however, the swings have been sharper and more frequent. The overnight session was uneventful and slightly weaker for Treasuries. By the time Draghi began his press conference, both MBS and Treasuries were in slightly weaker territory. 10yr yields in particular were pushing their recent technical support level at 2.15 (though they never broke it). Draghi’s initial prepared remarks were generally upbeat and did some slight damage. But in one of the Q&A responses, he noted that purchases could continue until yields reached the current deposit rate . That means if the ECB has money to spend in their €60bln/mo allotment, and an eligible sovereign…(read more)
Via:: MBS MID-DAY: Bonds Hold Ground in Volatile Trading as Europe Rallies on QE Details
Share this article
