Daily Commentary by Larry Baer: The Fed is scheduled to release the minutes from the March 13th Open Market Committee meeting at 2:00 p.m. ET this afternoon.
Investors will scour this document for any clues that might suggest the Fed is still leaning toward launching additional fiscal stimulus in the form of QE3 later this year. Credit market participants will also be keenly interested to know whether the central bank has plans to extend "Operation Twist" beyond its current scheduled conclusion in June.
This word-by-word deciphering effort with respect to the QE3 question will likely be in vain as policymakers are expected to sterilize these minutes to eliminate any chance their present view on the need for additional economic stimulus might create unintended consequences in the credit markets.
On the other hand, if the minutes indicate the Fed expects to conclude "Operation Twist" as planned in June - longer-term interest rates - including those for mortgages - will probably begin to move fractionally higher. It won't take credit market participants long to adjust to the fact that a buyer with a big checkbook has confirmed his/her intention to leave the marketplace in the relative near future.
I'll provide a summary of the key points of the Fed minutes on my web site as soon as possible once the document is released later today.
FYI: The mortgage market is usually closed on Good Friday - but to accommodate Friday's nonfarm payroll - the mortgage market will open at its normal time with an early close scheduled for 12:00 noon ET.
THE MARKET IS ALWAYS RIGHT! . YOU AND I ARE SOME OF THE TIME
