Posted To: MBS CommentaryWhat Exactly Might The Fed Do Tomorrow and Why Should We Care? MBS suffered, somewhat, from supply/demand issues immediately following the Fed’s 11:30-11:50am buying operation today. Prices rebounded by the close and were never catastrophically lower in the first place. With the exception of a surprise stimulus headline or a huge departure from expectations in Retail Sales tomorrow morning, focus now shifts squarely to tomorrow’s Fed announcement. What’s at stake? The Fed may or may not adjust the weighted-average maturity (WAM) of its bond buying portfolio. If they do, it would likely give Treasuries a friendly boost. Vice versa if they don’t. MBS would see a smaller version of the Treasury move in either case. Econ Data / Events 20min of Fed 30yr UMBS Buying 10am, 1130am …(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.