Present Market Conditions
Mortgage Bonds began the week near unchanged as the Stock rally took a pause, Bond and Interest rate market today showed not willing to commit in either direction
The rest of the week we will see data on manufacturing, housing, and consumer confidence, and will culminates with the granddaddy of all reports, the monthly Jobs Report for January on Friday.
It’s also Fed week with the two-day FED meeting kicking off tomorrow and ending on Wednesday at 2:00 p.m. ET, with the release of the monetary policy statement. There is almost no chance of a hike to the short-term FED Funds Rate at this Fed meeting. However, the statement could hint at future rate hikes in 2017, which is forecasted to see three hikes.
Bond and Interest Rate Market are volatile and there is no clear direction, market get a hint here and there of the consensus, but until the data hits and the FED speaks, there will not be any major moves. Of course, there's always the surprise headline from the new administration, and as always something new from Europe or Asia, but even that may be short lived. What are the odds we break lower or higher? At the end of the day, nobody knows, it is too unpredictable to speculate at this point.
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