Daily Commentary by Larry Baer: The Treasury
Department will sell $35 billion of 2-year notes at auction today. The final gavel will fall at 1:00 p.m. The short duration of these notes should draw
a solid bid from domestic and foreign investors alike. If so, this event will probably prove to be
supportive of steady to slightly mortgage interest rate friendly.
Earlier today the
members of the Federal Open Market Committee gather for the first of a two-day
monetary policy strategy meeting. Market
participants largely agree the Fed is almost certain to hold off from making
any changes to existing policy opting instead to keep a low profile as the
clock ticks down to the presidential election on November 6th.
Trading action in
the stock markets will once again likely prove to be the strongest single
determinant influencing the trend trajectory of mortgage interest rates this
week. Higher stock prices will tend to
drag rates higher while falling stock prices are almost certain to prove supportive
of the prospects for steady to perhaps fractionally lower mortgage interest
rates.
THE
MARKET IS ALWAYS RIGHT! . YOU AND I ARE SOME OF THE TIME
