So it is almost time for the FOMC meeting to get started–anticipation which is probably unwarranted as the results of the meeting have been telegraphed continuously. The problem with this continuous telegraphing is that if data runs hot (as much of it has) the FOMC is unlikely to react since markets react poorly to being ambushed.
I see that the 10 year treasury is trading with a lower yield this morning – down at 4.81% – down a few basis points from yesterday. This must be a move to safety because of the middle east war – don’t see any other particular reason for rates to fall. With the massive supply coming from the treasury in the year ahead one has to wonder who is going to buy all the supply – maybe a year from now the Fed?
Equity futures are up a bit this morning–although it is a tepid gain. Yesterday markets started very strong and then over the course of the day gave back most of the gains before rallying. We all know futures mean little – lots of game players out there trading for nickels and dimes.
Well let’s get going—get the day out of the way so we can get to the ‘main event’ tomorrow.