Market commentary
After opening unchanged this morning, U.S. Treasuries and mortgage bonds staged a small rally after the Commerce Department reported housing starts in the U.S. fell 5.9% last month. I am sure this came as no surprise given the severe winter weather in the majority of the U.S.
The Fed meeting is the focal point of the markets today. One need only tune into CNBC or Bloomberg television to confirm this. The Fed is most likely to focus on four topics: 1) The comment that interest rates will remain low for an extended period will probably not change. 2) The economy continues to strengthen, and inflation is in check. 3) The Fed MBS (Mortgage Backed Securities) purchase program was 98% complete as of March 3, 2010. Remember this program will end March 31, 2010, so analysts will be looking for comments regarding the availability of this facility should the housing and mortgage markets require additional support. 4) The Fed will also focus on continuation of their exit strategies to remove liquidity from the market should inflation begin to rear its ugly head.
The Fed announcement is scheduled for 2:15, P.M., ET, 11:15, PT.
The Fed meeting is the focal point of the markets today. One need only tune into CNBC or Bloomberg television to confirm this. The Fed is most likely to focus on four topics: 1) The comment that interest rates will remain low for an extended period will probably not change. 2) The economy continues to strengthen, and inflation is in check. 3) The Fed MBS (Mortgage Backed Securities) purchase program was 98% complete as of March 3, 2010. Remember this program will end March 31, 2010, so analysts will be looking for comments regarding the availability of this facility should the housing and mortgage markets require additional support. 4) The Fed will also focus on continuation of their exit strategies to remove liquidity from the market should inflation begin to rear its ugly head.
The Fed announcement is scheduled for 2:15, P.M., ET, 11:15, PT.
at
10:38 AM
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