Posted To: MBS Commentary
There will be no Retail Sales report this morning due to the government shutdown. This provides a perfect example of the issue the bond market is currently facing. It begins with the state of flux in the economy and in monetary policy. Now more than ever , arguably, the Fed is on the lookout for clues in economic data. They need to know whether it makes any sense to keep hiking rates or if there are some indications that things could be slowing down. To be fair, the Fed has already shared anecdotes about growth concerns, but then something like the last NFP report comes along and compels the Fed to keep rate hikes on the table. Fed policy aside, market participants would also like a read on how the economy is doing, considering the uncharted territory in which we continue to operate (i.e. longest…(read more)
Via:: MBS Day Ahead: This Morning’s Retail Sales Report is Emblematic of The Bond Market’s Issue
