The Smart Team of NOVA® Home Loans

MBS Day Ahead: A Lull Before Tomorrow's NFP; Follow The Bouncing Stocks?

Posted To: MBS Commentary

The day begins with a similar pattern shaping up to that seen in late March when the healthcare bill drama was highest. Said drama translated to the biggest 90 minutes of losses in stocks since the election. Yesterday's release of the FOMC Minutes had a similar effect, both because the Fed confirmed that it would soon be removing more accommodation from the market (by reducing its balance sheet reinvestments) and because the Fed seems to increasingly be concerning itself with what's going on with equities markets (they mentioned it a few times in the previous meeting minutes and several more times in yesterday's minutes). In general, the Fed thinks high stock prices are both good and bad. On the one hand, several Fed members noted that higher stocks contributed to an easing of "financial…(read more)

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Source: Mortgage News Daily

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