Tuesday, August 5, 2008
Rate Watch: Jittery
Here's a new one: Jittery! This Rate Watch comes to you with the Fed meeting at 2:30 Eastern and leaving the Fed discount unchanged at 2.00%. For now the Bonds are level, earlier they were trading lower (Bond prices lower, yield higher, mortgage rates higher), and stocks are in positive territory with Proctor and Gamble releasing their net profit increase of 33% (I guess American's are driving less and cleaning more? :)). For now I recommend floating to see how all of the recent news filters through to the Bond Market. Additionally, Oil is again trading lower, which is helping hold down inflation (bonds hate inflation!) fears. I will be watching for changes in this very volatile market. Have a great day!