| Sep 21, 2011 5:16PM Yesterday we wrote: "Until we see proof that the Secondary Mortgage Market can break higher than its recent highs, we're hesitant to outright PLAN on it happening." This is exactly what happened after today's FOMC Announcement (aka "Fed Rate Decision," although the RATE isn't important these days because it's not moving and not expected to move). Markets had been expecting the Fed to commit to shifting their TREASURY holdings to longer maturities (like selling 2-3yr notes and buying 10's), and indeed... Sep 21, 2011 3:03PM Here's the alert MBSonMND subscribers received shortly after the FOMC statement: 2:58 PM; Reprices for the Better Likely as FOMC Statement Rocks Markets Bond markets got the "active" twist for which they were hoping when the Fed said today that it would sell $400 bln worth of 3month to 3yr Securities and reinvest them in longer maturities as follows: - 32 % in 6-8 yrs - 32% in 8-10 yrs - 4% in 10-20 yrs - 29 % in 20 to 30 yrs (surprisingly robust vs expectations) - 3 % in TIPS It's no coincidence...
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