Rates Sitting Near Bottom of Ranges. News from the Fed this week included, a 3/4 point Fed Funds rate cut, an emergency, 1/4 Discount Rate cut and $30 billion in aid to Broker Dealers aimed at rescuing Bear Stearns from bankruptcy, which JP Morgan is poised to buy. Other economic news included lower-than-expected NY State Index & Industrial Production, higher-than-expected Jobless Claims, a weak Philly Fed Survey and weaker Building Permits. Housing Starts reported better-than-expected. Net Foreign Purchases and Leading Indicators reported as expected. The Producer Price Index reported as expected with a higher Core Rate reading that excludes food and energy. Rates were lower on the week but remained within the low ranges set on January 23rd, which followed an unprecedented emergency Fed Funds Rate cut of 3/4 points. Current credit markets yields are not trending as low in relation to previous, recent Fed Funds and Discount Rate cuts. This is a sign that rates are bottoming. Lock Triggers: 10-yr. Note Conservative 3.51%, Aggressive 3.51%.
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