Rates Hold Steady

Rates came out with a slight improvement from yestreday's sell-off, but worsened mid-day with an end of day rally (I love this business!) to finish slightly better than yesterday. The main reason for the see-saw day is the light volume (individual trades will more effect the market and prices). Why is the volume so light? The US Treasury is auctioning off 5 year and 10 year notes on Wednesday and Thursday. The government is now going to monthly rather than quarterly auctions in order to raise the enough money to fund the deficit.

We will probably see a soft market for a few days until the auctions are over.

BUT!, as I have said before, if I knew for certain (or was right more than 50% of the time) I would be on a new boat in the Carribean!

Posted by bruce at September 9, 2003 04:01 PM | TrackBack