“As the obtusely vague, yet accurate, mentality goes; the markets will go up until they don’t. " This quote comes from an analyst this morning describing the U.S. Treasury market, as we see selling of Treasuries which pushes bond prices lower/interest rates higher. Bond prices have rallied the past few sessions which means interest rates were lower, and this morning the opposite is happening, mostly as a result of investors piling back into stocks. As of this posting the DOW is higher by 140 points.
The Fed released the minutes of their June 21 – 22 meeting Tuesday afternoon and there were few surprises. And as Fed Chairman Bernanke reiterated in his comments to Congress this morning, the Fed is ready to ease again (QE3?), if the U.S. economy continues to struggle.
Still on the calendar for today is the 10 year note auction and of course we will have news on the continuing saga of the U.S. debt ceiling and budget debates, and the worsening financial crisis in Europe.
The price of the 10 year note has fallen .625%, pushing the yield back to 2.94%, and mortgage prices are worse by .125% to .25%.
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