The Smart Team of NOVA® Home Loans

MBS Week Ahead: Bonds Approach Inflection Point Amid Data and Fed Minutes

Posted To: MBS Commentary

Remember March 15th's Fed Announcement? That was the one where the entire free world was utterly and completely convinced that the Fed would hike several weeks in advance of the announcement itself. The entire world was right, of course, but that wasn't the most interesting part of the announcement. Instead, it was the Fed's rate hike expectations based on the "economic projections" released at every other meeting (aka "the dots," due to the dot plot the Fed uses in its press materials) that set the tone. Late February comments from various Fed speakers–especially NY Fed Pres Dudley–served to forcibly raise the consensus on the Fed's rate hike trajectory. Markets quickly priced-in a faster pace of rate hikes in addition to the "done deal" that…(read more)

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Source: Mortgage News Daily

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