The Powell whipsaw continues, and this time things are moving in our favor.
The shift happened when the Fed Chair said he didn't see inflation expectations rising much and that they seemed to be anchored just under 2%. He also said the Fed is not thinking about raising rates.
The rally got another small boost after Powell mentioned doing more to support funding markets, but it's not clear if that's correlated or merely coincidence.
10yr yields are now down 5bps at the lows of the day (1.787) and Fannie 3.0 MBS are up nearly a quarter point at the highs of the day.
