Interest rates are unchanged from yesterday morning.
Treasuries rallied yesterday afternoon but started off this morning down 18 basis points as equity markets are attempting to recover yesterday’s losses. The Treasury will auction $21Billion of 10 yr notes this afternoon; yesterday’s auction of $32Billion of 3 yr notes went pretty well and if the same results occur today interests rates could see some more recovery from where they started off this morning.
The Fed will release its Beige Book on the economy from the 12 Federal districts today at 2pm; notes from this particular book can have the ability to move the markets but combined with today’s auction of 10 yr notes we aren’t expecting much.
Many analysts believe that the treasuries market is still oversold and that equity markets are overbought, we will keep any eye on if this theory holds true moving forward and I will maintain a neutral stance on locking interest rates.
Current Outlook: neutral