MBS RECAP: 9/20/2011


Since the glut of today came and went last Thursday morning, the general vibe in markets has been that all are on hold until tomorrow’s FOMC announcement.

Stocks seem poised to either break some long term resistance or to be rejected and fall appreciably lower.

MBS continue to be stymied by the “Concrete Ceilings.” And Treasuries seem to have already priced in Operation Twist. So the default expectation is that the Fed will mention something about selling shorter term holdings and using that money to buy longer dated Treasuries such as 7s, 10s, and according to some speculation, all the way up to 30’s.

Are stocks hoping for an indication of QE3? Only the announcement itself will resolve these curiosities, but fore sure it seems that volume and volatility will be in heavy supply after the announcement. That hits at 215pm Eastern time tomorrow and the only other peice of scheduled data is Existing Home Sales at 10am which is expected to be uneventful.

That’s basically “it” for the week as well, considering the only other scheduled data are weekly jobless claims on Thursday morning, some 3rd tier releases later that day and some Fed Speak on Friday.

For a detailed look at all the economic events of the week, see the following link:

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