Credit Concerns Continue to Drive Bond Market Prices
21 August 2007
Tuesday’s bond market improved again as investors continued to buy treasuries.ﾃつ Rates should improve by about .25 of a point.
The rates will continue to be driven today and tomorrow by the stock market and credit crunch concerns.ﾃつ ﾃつ Extreme deterioration of the price of short term treasuries over the past few days has led to market speculation of a Fed rate cut coming soon.
July’s Durable Goods Orders will not be released until Friday, which will give us a sense of manufacturing sector strength.ﾃつ However the focus currently is less on economic reports and forcasts and more on the day to day drama in the stock and credit markets, as well as reaction, or lack their of, by the Fed to the crisis.
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