Rates settled lower after rising for three days straight on poor economic data. The worsening situation with CIT brought an even stronger bid to the market but we didn’t get the flattening effect along with the rally like we have grown so accustomed to during this past cycle. The middle part of the curve (five-year) outperformed, while the 2-10 spread was unchanged on the day.
The Federal Reserve purchased $1.499 billion in TIPS on $9.188 billion in bonds submitted, a weaker ratio than average. The entire Treasury buying program is very small when considering the size of the Treasury market, and hasn’t made a material impact on anything outside of the initial fury when the program was first announced. The FOMC minutes that were released Wednesday show the committee’s reluctance to increase the number going forward. In my opinion this is a smart move by the Fed.
Cliff J. Reynolds Jr.
The Federal Reserve purchased $1.499 billion in TIPS on $9.188 billion in bonds submitted, a weaker ratio than average. The entire Treasury buying program is very small when considering the size of the Treasury market, and hasn’t made a material impact on anything outside of the initial fury when the program was first announced. The FOMC minutes that were released Wednesday show the committee’s reluctance to increase the number going forward. In my opinion this is a smart move by the Fed.
Cliff J. Reynolds Jr.
No comments:
Post a Comment