4/14/10

Most rate prices are unchanged as mortgage bonds hold Tuesday’s levels. Bernanke began his testimony before the Joint Economic Committee of Congress earlier this morning. Meanwhile, MBS supply and demand has reached a bit of equilibrium at midweek helping to keep rates stable. The Dow pierced and is holding above 11,000 and now the S&P is tickling the 1200 mark after positive earnings reports were released today. February Business Inventories reported the largest gain since July 2008, Retail Sales beat expectations for a second month and the Consumer Price Index came in slightly better than expected. All ears are on Bernanke, looking to hear any hints of a change in the Fed’s “extended period” language. But, alas, Ben’s prepared remarks have no mention of any change. Nonetheless we will see if traders can parse any tradable tidbits from the chairman testimony. Stay tuned…