MBS Week Ahead: Stronger Start Despite Charts; Some Data This Week, But Fed Day Remains in Focus

There is a smattering of data in the week ahead with Tuesday’s CPI and Thursday’s Retail Sales reports being the headliners.  Data is merely a “potential” market mover though.  Next week’s Fed announcement is an “almost certain” source of volatility, for better or worse.  In addition, by this time next week, markets will have a better sense of whether covid numbers actually turned a corner last week or if it was merely a byproduct of the holiday weekend. That leaves this week as a sort of prologue to next week’s main events, but data and corporate bond supply could still…