MBS RECAP: Bonds Pull Back For 2nd Day Amid Healthcare Limbo

Posted To: MBS Commentary

Rarely has something so "off the radar" become such a focal point for financial markets as this week's vote on a healthcare revamp to replace the Affordable Care Act. Rather than stand on its own merits as a market mover (because those would be underwhelming), the healthcare vote has come to represent more of a vote of confidence in the Trump administration's ability to get its other policies through the political system. When we consider that those policies are responsible for the big move in bonds and stocks seen at the end of 2016, it's not hard to imagine that a lot is at stake here . The past 2 days of trading tell us that bond markets are in a neutral position and waiting to see what's what after the healthcare vote. In any event, the rally that began after the…(read more)

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Source: Mortgage News Daily

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