Warning: Undefined variable $custom_content in /home4/comcompare/public_html/mortgagenews/wp-content/plugins/code-snippets/php/snippet-ops.php(582) : eval()'d code on line 7
Last updated on September 27th, 2022 at 04:59 am
The Fed’s positive decision on a volatile day gave false hope for yields. This is evident in the Thursday sales off.
Now on Friday, another big overnight sell-off has recovered well at 9:20 am on false expectations. Since then, they have all been traders. In other words, the group fell again.
But the question WHY remains. It’s not that I don’t understand that the market is expressing views on a Fed rate hike based on this week’s dot chart, but that doesn’t seem to support the pain we’ve seen.
The Bank of England (BOE) announced the sale of its assets yesterday, making the UK look for other suspects.
The excessive volatility in the UK bond market raised doubts but was largely muted until yesterday afternoon.
Now we feel more British today and this time is clear. Unfortunately, it’s also a little weird and esoteric. This is according to the “small budget” announced by the British Treasury Secretary.
You do not need to know what that means, especially because of yesterday’s approval of the sale of BOE bonds, except that it has a significant impact on the supply-demand for UK bonds.
In other words, it’s a double whammy for UK airfares, with UK airfares often leading US airfares.
In this sense, the following diagram is surprising. Knowing that the Fed’s announcement took place on September 21, it is safe to assume that US rates may not be much higher as the Fed no longer affects the UK. You probably are true.
Repair of the credit rate is that the lower issue of the American fruit for food ideas for the expenses of the increase in MB. So, even though the decade has turned green, MBS is still in bad territory.
Reference Source: Mortgage News Daily
