Fed Day

Fed did not change rates orMBS & Treasury purchase program

It's Fed Day... and that means the Fed will release its Monetary Policy Decision and Statement later today. While there will be no change to the Fed Funds Rate, I will be listening for any potential news that may move the financial markets. For example, if the Fed indicates it will expand its purchase of long-term Treasuries, Mortgage Bonds may see a boost. If not, however, they may decline.
In other news today, Durable Orders came in better than expected for May, led by orders for airplanes and machinery. Although one report doesn't make a trend, the reading is encouraging and may signal that the economic slump is starting to ease.For now, I recommend floating, as we watch to see how the markets react to the Fed's statement later, as well as another government auction of 5-Year Notes today. Remember, the market can be very volatile right now, so be prepared to lock if the situation changes. I will continue to monitor the financial indicators and keep you posted.