Tuesday, June 19, 2012

QE3 coming to a rate sheet near you?

Mortgage bond prices opened near unchanged Tuesday morning holding rates steady from pricing Monday.

In news released at the open, housing starts printed at 708K. Expectations were for 725K starts. That data had little effect on trade.

With no more news set for release today traders are now waiting for stocks to begin trade at 9:30 am ET. Currently Dow futures indicate the index will open slightly higher.

Trade in Europe was quiet, a welcome relief. The ZEW Economic Sentiment report shocked to the downside with both the Euro zone and Germany printing well below expectations. Recession pressures are building in Europe and around the world. Greece looks to form a collation government as early as today. That would be good news for the entire world.

The Fed begins their two-day meeting today and will announce changes to interest rate policy tomorrow afternoon. Many are looking for the Fed to ease further. At this juncture in history, the majority of the world’s major economies are looking for support from central bankers. Global growth is slowing and inflation pressures are in check. Who knows, is QE3 coming to a ratesheet near you?

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