The day started with Bonds trading slightly higher with stocks also slightly higher in response to the anticipated Fed Funds rate decrease this afternoon.
As reported in days past rate watches, Bonds are anticipated to react unfavorably to the rate cut and this was in fact how the day played out.
When the Fed announced the cut, Bonds began trading at their lowest level of the day, and the floating bias changed to an alert to lock as investors were at a point they would consider a reprice for the worse.
For now, we will watch to see how positive this information is received in the equity market (stocks) and how it effects Bonds, Mortgage Backed Securities and the Treasury Market (safe haven for money).
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