Posted To: MBS CommentaryFed Abstains From Bond-Buying Change, But Powell Delivers Speculation about whether or not the Fed would make a bond buying change at the December meeting is now behind us. The Fed changed almost nothing in its policy statement. In fact, the changes it made were arguably bond-friendly. Nonetheless bonds sold off at 2pm due to the absence of the any change to the bond buying average maturity. Weakness was contained and buyers came charging back after Powell laid out some tough talk for inflation hawks in his press conference (paraphrasing: the 70s are over and it’s OK that the Fed is creating 10s of billions of dollars a month in new money). By the close, bonds were close enough to unchanged to call Fed day a wash. Econ Data / Events 20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm…(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.