Rate Update December 19, 2008
Rates remain about even with yesterday though bonds are trading down on the morning
President Bush announced that GM and Chrysler are going to receive $13.4B in government aid. The money will come in exchange for the companies restructuring. This news has lifted auto stocks and also the market as a whole, which is currently dragging on bonds this morning, which are down 34 basis points in early trading. We expect things to be very volatile in the coming days, just as they have recently.
There is no economic set for today so bonds are likely to react to how the stock market is trading.
Current Outlook: locking short term, floating long term.