Posted To: MBS Commentary
Despite a fair amount of anticipation, today’s Powell testimony proved to be a non-event for the bond market. Instead, things like the weak Housing Starts data and strong Consumer Confidence got far more attention (as long as we’re talking about attention in a relative sense). Overall, today’s trading range was very narrow in the bigger picture, and yields remained well inside the broader consolidation range that’s been dominating 2019 so far. Powell did manage to convey what we thought we heard him say several times recently: that the Fed has no real idea which way the economy is going to go, so watching data is very important as the Fed will react accordingly. Ostensibly, this means they could cut rates later this year if things go south, but they could just as easily raise…(read more)
Via:: MBS RECAP: Bonds Rally Back to Range Lows With or Without Powell
