Economic data is light this week and the main focus of the markets will be the two day Fed meeting. The consensus of Fed watchers expect an announcement that will include the purchase of medium term Treasury debt in an effort to force longer term interest rates lower. However, the bond market has already priced this in.
Between now and the Fed meeting Europe remains front and center, as EU finance ministers left their weekend meeting with no resolution to the debt crisis. The markets are bracing for the worst, which is a default by Greece on its debt. The lack of progress in the EU debt talks has U.S. stocks in a broad sell-off and a flight to safety in U.S. Treasuries. The yield on the 10 year note has once again fallen below 2.00%, currently trading at 1.965%, and mortgage prices have improved by .375% to .50% from Friday.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment