SHV - Tantrums And Tapers TBAs And Mortgage Rates
To be an interested observer of things in the summer of 2013 was to be awash in the awareness of so many contradictions packed into one little piece of history. Forward guidance, for one, recognized the effects of markets. If QE was really effective, interest rates would rise not fall in anticipation of those positive effects.
This was, actually, the whole thing behind 2013's "taper tantrum." Ben Bernanke came up with a contrary scheme the year before when announcing QE3 hoping to head them off. He anticipated that his form of "forward guidance" would prove