Danny Salas

Chico, CA Interest Rates Market Report – Economic Influences – March 29, 2010

Volatility Is Back!

Whatta Week!

There is a lot occurring this week.  Wednesday ends the Fed $1.25 Trillion Government Mortgage-Backed Security Purchase Program.  Once that program ends, expect rates to climb a little.  We expect about .25% in rate, as we have already moved approximately .25% higher after last weeks taste of market nervousness, after a not-so-good auction of Treasuries.  Thursday will provide us with the new Jobless Claims Numbers.  This week, the Fed will announce next weeks auctions of 10-Year TIPS, as well as 3, 10, & 30-Year Treasury Note Auctions.  There are FINALLY investors, sitting on the sidelines, waiting to purchase these securities, however, without the U.S. Government purchasing some of them, we’ll have to see where the returns will have to be (yields), in order to capture investors’ attention.  Which translates to higher interest rates!  Finally, we’ll see the Jobs Report Number on Friday.  Due to market volatility, temporary hiring of census bureau workers, and weather across the country, getting better…these jobs numbers could be hot, so if you’re not locking…better have an itchy lock finger.

Inflation Vacation

The Fed’s Favorite Gauge on Inflation, the Core Personal Consumption Expenditure Index (PCE), came in at a tame 0.0%.  This left the year-over-year PCE at 1.3%.  The Fed desires to keep inflation between 1.0 and 2.0%.

Good Friday

With this Friday, being Good Friday, Stocks and Bond Traders will have a small window, in order to cash in, or buy their investments.  When this occurs, it creates shifts in the market that can’t handle the volume.  So, like a hose that gets smaller and smaller, pressure builds and rushes prices to next levels exponentially.  So, Friday’s gonna be a potential mover of markets.

Carefully Float Into The Day

Floating Advice

Careful floating (and I mean careful), could be the theme of the morning.  However, as mentioned earlier…you’d better have a finger on the lock button…volatility is the name of this game.

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This entry was posted on Monday, March 29th, 2010 at 7:53 am and is filed under Chico Home Loans, Home Buying, Interest Rates. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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