Weekly Outlook
Current Tren Direction: Higher
Risks Favor: Cautiously Floating
Current Price of FNMA 6.0% Bond: $100.47
This has been a bond friendly week. With reports showing lower inflation (Core Prices) and an overall slower econdomy (GDP) it looks like interest rates are primed to bounce back a few notches. Initial jobless claims came in at expectations of 316,000 stabalizing the upward trend we've been experiencing.
On a technical level, bonds still remain overbought, which doesn't seem to be having an effect on investors; participation at yesterday's auction of 20 billion in two year treasury notes went very well (37%). The high level of foreign interest in our bonds is strengthening the push lower.
Risks Favor: Cautiously Floating
Current Price of FNMA 6.0% Bond: $100.47
This has been a bond friendly week. With reports showing lower inflation (Core Prices) and an overall slower econdomy (GDP) it looks like interest rates are primed to bounce back a few notches. Initial jobless claims came in at expectations of 316,000 stabalizing the upward trend we've been experiencing.
On a technical level, bonds still remain overbought, which doesn't seem to be having an effect on investors; participation at yesterday's auction of 20 billion in two year treasury notes went very well (37%). The high level of foreign interest in our bonds is strengthening the push lower.
posted by Capital Financial Network at 2:39 PM
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