Posted To: MBS Commentary
There’s something that’s just too fun about entertaining conspiracy theories –especially when it comes to the Fed’s rhetorical platform. Take for instance tomorrow’s Minutes (the more detailed account of the meeting that took place in late July). Bonds had been approaching the Minutes from a fairly neutral stance, and were certainly set to adjust to a more bullish (read: lower rates) stance after this morning’s tepid economic data. In other words, we were in the middle of the recent trading range yesterday and we were near the lower end of the recent trading range immediately following this morning’s tame CPI numbers. But mere minutes later and we had given up most of the gains. A few hours later and we were well into the weakest territory in more than a week. Why?…(read more )