When the facts change I change my mind, what do you do sir
-
The Bond Market Can't Crash if Fed Taper Is Already Discounted
Volatility, negative convexity, and the bond market's paradigm shift. In the wake of Friday's better-than-expected 203,000 non-farm payroll report, the Wall Street Journal's Jon Hilsenrath reported that with the better economic news that preceded this data, the Fed is likely to begin to scale back on its controversial $85 billion per month bond-buying program. Thus while the headlines focused on the torrid rally in stock prices, in light of this interpretation, the real story of the day was the reaction in the bond market and more specifically the mortgage-backed security (MBS) market. The initial knee-jerk reaction ... (full story)
- Comments
- Subscribe
- Comment #1
- Quote
- Dec 9, 2013 9:38pm Dec 9, 2013 9:38pm
- Pip Anon
- Joined Jan 2013 | Status: Trading defies logic | 1796 Comments
- Comment #2
- Quote
- Dec 9, 2013 9:59pm Dec 9, 2013 9:59pm
- Brad6
- | Joined Sep 2013 | Status: Member | 48 Comments
- Comment #3
- Quote
- Dec 9, 2013 10:12pm Dec 9, 2013 10:12pm
- toptrader11
- | Joined Jul 2011 | Status: Member | 537 Comments
- Comment #4
- Quote
- Dec 9, 2013 11:09pm Dec 9, 2013 11:09pm
- Pip Anon
- Joined Jan 2013 | Status: Trading defies logic | 1796 Comments
When the facts change I change my mind, what do you do sir