Fed Minutes Today at 2pm EST

Follow the markets live as the Fed Minutes are released at 2pm EST today.

It’s Fed Day. Are you ready?

If you’ve been following the MBS Commentary, you know what a big deal this afternoon could be. Markets have been preparing for it for weeks and MBS Live members have been on top of those movements every step of the way.

This afternoon, when markets are convulsing mere milliseconds after the Fed Announcement, MBS Live members will know what’s going on before anyone else. The accuracy and speed of our real-time price stream and alerts is unmatched.

MBS RECAP: Fed Confirms Market’s Fear; Bonds Manage to Hold This Week’s Range

The last time bonds sold off for 6 consecutive weeks, it was 2009 and the low rate trends spurred by the financial crisis were in their infancy. This time around, the 6 weeks of pain is more of a confirmation of the market’s mission to price-out the pandemic.  The Fed confirmed something too: that traders were right to be wary about their SLR intentions.  There will be no extension.  Fortunately, it seems that the market had done enough selling to prepare for this eventuality, and bonds didn’t freak out too much.  That said, they didn’t rally either…

Market Movement Recap

09:12 AM

Stronger overnight, then a big blast of selling after news that the Fed’s SLR exemption will not be extended.  Could be worse as far as current levels are concerned.  10yr just barely weaker at the moment and UMBS 2.5 down less than an eighth.

12:54 PM

No delayed reaction to SLR news, which is a good thing.  Same yield ceiling still intact and 10yr is nearly unchanged on the day.  MBS underperforming a bit with 2.5 coupons down just over an eighth.

04:14 PM

Moderate drift toward weaker levels continues, but still inconsequential in the bigger picture.  10yr yields at 1.73% are effectively snuggled up to long term highs at 1.75. and 2.5 UMBS at 102.25 are at their lowest levels in nearly a year.  That’s 6 weeks of pain in the books.  Hopefully the next one is better.

About the Author

Chief Operating Officer,
Mortgage News Daily / MBS Live

A former originator, Matthew began writing for Mortgage News Daily in 2007, covering a wide range of topics. Seeing a need in the marketplace, his focus increasingly shifted toward relating MBS and broader financial markets for loan originators.


Discuss the MBS and Mortgage Markets on Our Streaming Dashboard

By Matthew Graham , dated 2021-03-19 16:47:12

Source link

Courtesy of Mortgage News Daily

Leave a Reply