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MBS RECAP: What Fed Day? This One Was a Dud

Posted To: MBS Commentary

As far as Fed days go--especially the kind where we get updated economic projections--today's example was pretty damn uneventful. These things happen from time to time, but this wasn't exactly a day where a "dud" announcement was seen as being very likely. Markets were hungry for clarification on the Fed's rate outlook as well as any response to the short-term funding market woes of the past few days. I could weave a bit of a tale for you about how the market moved in a big way ahead of the announcement due to expectations for certain changes/inclusions and how it simply unwound that movement when it didn't get what it was looking for, but that would be giving too much credit. It's true that expectations ramped up a bit for a slightly friendlier Fed than we got...(read more)