MBS MID-DAY: Weaker Despite GDP Miss, Settling In For FOMC

Posted To: MBS CommentaryMBS Live : MBS Morning Market Summary Bond markets had done a somewhat decent job of clawing back from overnight weakness by the time the domestic session got underway. The stronger-than-expected ADP print didnt afford much time to settle in to any ranges, at first pushing prices to the lows of the morning, but subsequently being shrugged off by both stocks and bonds. Any ADP-related movement was dwarfed by the GDP reaction which netted several quick bps of gains in Treasuries, 6 ticks of improvement in MBS and a 5 point sell-off in S&P futures in the blink of an eye. The bounce was short-lived as markets digested GDPs internals and saw a less gloomy outlook than the headline suggests (chalking the negative number up largely to inventories changes and a decrease in Defense spending)....(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.http://www.mortgagenewsdaily.com/mortgage_rates/blog/293613.aspx @ uwad.com