MBS RECAP: Forget the ECB; Taxes Saved Bonds Today
Follow the markets live as the Fed Minutes are released at 2pm EST today.
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.
Apr 22 2021, 10:04AM
Today s only real significant market mover is/was the ECB Announcement and press conference. They weren t expected to change policy, but markets were curious to get ECB Pres Lagarde s take on bond buying. In short, the bank remains strongly committed to the original pace of asset purchases. When Lagarde finished the press conference without saying anything discouraging for bonds (i.e. no whammies ), the reaction was swift and obvious.
This is helping bond markets remain strongly committed to the recent, lower-yield trading range marked by lows of roughly 1.53%. The more important accomplishment, however, has been the steady move lower after hitting the 1.75% ceiling. A close second would be the pivot below the 1.62% technical level. Lastly, we can also read some positivity into the move below 1.585 over the past 3 days, with confirmation bounces yesterday at 1.5837 and this morning at 1.579 (close enough to consider thes