10/14/09

Treasuries were weak from the get-go this morning with the stock indexes roaring higher; the DJIA at 8:00 was trading +90. No signs of any weakness in the equity markets as the DJIA is now seen headed to 10K. JP Morgan profits were well above forecasts (about 7 times better), and is driving all bank and financial stocks higher this morning, taking the entire market up with it and Sept retail sales were better than expected this morning. As a result, mortgage rates have moved a bit higher.

At 2:00 the FOMC minutes are the day's biggest known-unknown, with the market sniffing for hints of dissention on rate hike timing among the ranks and inflation concern. While no one is expecting a tightening move from the Fed for many more months until unemployment bottoms, markets will be way out front in driving rates higher----slowly, but moving higher.