FNMA 4.5% bond GAINED 38 bps today in the wake of some interesting news. Tomorrow's vote on the stimulus package comes with a promise that the new Treasury Secretary Tim Geithner will be unveiling the spending plan for the second half of the "stimulus" that passed this fall. (They are calling it TARP II) As dire as things have been made out to be (last fall and last week!) we havent tapped into the 2nd half of the money that was already appropriated for "rescue" of the economy. Hope for the best as the new plan rolls out. 350 BILLION is not chump change and could really do some good if the resource is spent wisely. Many expect the latest "bill" to be passed with tomorrow's vote. Expect some volatility as investors decide how to "feel" about it.
Rates will likely improve tomorrow! Rumors that the fed will again purchase bonds that will support rates at 4.5% have come forward again. Bravo! Remember that according to the most recent activity reported each Thursday it has really looked like the feds were supporting a ceiling of rates vs. attempting to draw them down. Feds were buying 5 and 5.5% bonds...which support 5.5-6% rates. Inflation fear seems to have subsided for now...so the efforts of the feds to drive rates this way will hopefully not be inhibited by investors pulling out.
DOW: Down about 10 points with S&P and Nasdaq also about level on the day. No financial news released today...
Good to be friends: Did you know that 49% of all publicly held US debt is held by foreign investors? As of September 2008 $2.9 TRILLION worth of US treasury securities were owned by foreign investors. Yikes.
Haveagreatafternoon!
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Chad Schauers
Have you metChad?
MetLife Home Loans
406.522.0922
406.522.0924 (fax)
1924 W. Stevens, Ste. 202
Bozeman, MT 59718
Cell: 406 799 8613
ccschauers@metlifehomeloans.com
