Danny Salas

Archive for January 4th, 2010

Chico, CA Interest Rates Market Report – Economic Influences – January 4, 2010

Rates Trying To Correct Huge Loses

Decade’s First Day Sees Rates Decline

Interest Rates are declining for the first trading day of the decade.  It looks as though rates are trying to make a move into better territory, after they have just been pummeled since November 25th.  Keep in mind that we’re, now, in 2010; and the Government Mortgage-Backed Security Purchase Program will be ending in three months.  So, even if rates make a modest comeback, it will only be exactly that:  Modest!

$140 Billion Left

That’s right!  Out of the $1.25 Trillion, there is only $140 Billion Left.  Once the government is unable to buy bonds, to keep rates down, we’ll see quite an interesting shift in where rates will be.  A steady climb into the sixes, is what I predict for next summer.

When (a governing board member) Speaks…

Atlanta Fed President Dennis Lockhart will be speaking at the American Economic Association Conference today.  Whenever a governing board member opens their mouth, markets can react nervously.  So be prepared!

Related Must Reads

Links To, “When Bernanke Speaks”
Higher Rates…Period!
Locking Advice! From September 24. 2 Reasons Rates Will Rise

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