4/29/10

Yesterday both the bond and stock markets rebounded from moves on Tuesday. Bond prices fell, and rates slid up due to the concerns over Greece. The Federal Reserve said interest rates would remain low for an extended period and pointed to signs of strength in the economy. (Are there any questions on this? I hope not – the Fed has said the same thing in the past several announcements.) And we had a decent 5-yr Treasury note auction.
Most rates are level to slightly worse today as mortgage bonds hold onto Wednesday’s losses but appear to be contained and attempting to firm up. Treasuries are largely unchanged this day after a big snore of a Fed rate decision. In news released today, modest improvements were reported in manufacturing and jobless claims. Today brings an offering of 7-year notes. Let’s hope for similar results, due out around 10:15am.