Rates are lower today as a worried world pours into the relative safety of US Treasuries this morning as a result of shelling in Korea, fears associated with the sovereign debt crisis in Ireland and a potential bank run in that nation and the other PIIGs. Stronger than expected GDP numbers were overshadowed this morning by these events and as a result equity markets are down about 1.2% so far today. Very poor home sales data was released today helping to underpin the equity sell off this morning and Treasury bonds are seeing strong demand in early trading helping to push down the yield on the 10 year T Bill to 2.744%. Today’s scheduled 5 year Treasury Bill auction is expected to go well given the geopolitical tension so we will see if the falling yield trend will continue. Federal Reserve minutes from this months FOMC meeting will be released this morning around 11 am so stay tuned people.
In the News Today:
- - The US economy expanded at a 2.5% pace in the third quarter
- - Existing home sales fell more than forecast in October
- - Richmond Fed manufacturing survey due out for November
- - Irish rescue plan now shifts focus to Portugal, Spain and overall EURO stability
- - China’s banks report near the end of their loan quotas and begin to halt lending
- - Freddie Mac raises mortgage fees as it attempts to staunch losses
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