11 Jul Alert to lock
Soothing words from Ben Bernanke have given markets reason to move higher. mortgage bonds are holding gains after yesterday’s drop due to the FOMC Meeting Minutes. The dialogue indicated more than a few members were prepared to wind down bond purchases by the end of the year, and that confirmed what many investors were thinking. But then, Mr. Bernanke gave a speech in front of the National Bureau of Economic Research and said that unemployment was still too high, and inflation was too low to slow down the printing presses. The speech started after markets closed and have now pushed stocks within reach of new all time highs once again today. Initial Jobless Claims came in higher than expected at 360,000, and that is virtually the same figure as it was 1 year ago. We can start the day by floating, but stock momentum could have an impact on the bond market, so be prepared to lock.