There has been a barrage of economic data and news released today, yet Bonds have remained relatively steady so far this morning. Meanwhile, JPMorgan Chase surprised the market with an earnings report that beat expectations. It's been awhile since a financial Stock actually surprised to the good side.
In other news, inflation is virtually non-existent at the wholesale level as the Producer Price Index showed that prices fell in December for the fifth consecutive month. Tomorrow’s Consumer Price Index report will show how costs have increased or declined on the consumer side, and I will be watching to see how the markets respond.
Overall, Bonds continue to move in a sideways pattern, thanks in part to the Fed buying support of Mortgage Backed Securities. For now, I recommend floating, but I will let you know if Bonds begin to move sharply in one direction or another.
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