Last night the Senate confirmed Timothy Geithner as Secretary of the Treasure. Obama showed up to swear him in, which is a bit unusual. It will be interesting to see how Obama's recovery plan will advance.
Consumer Confidence comes in lower than expectations and knocked the life out of stocks. Mortgage Bonds catch a slight bounce. The conference board said they are beginning to see improvements in consumer expectations...could this be the result of renewed hope with a new President?
This afternoon a big supply of Bonds will hit the market at 1pm ET, when the Treasury will auctions off $40B in 2-year T-Notes. This could put some downward pressure on Mortgage Bonds as this additional supply will need to be soaked up by the market. It's the old supply and demand rule.
The Fed begins its two day meeting this morning with the big interest rate decision and policy statement coming tomorrow. As I said yesterday, the world will be listening and holding on to every word when the statement is released tomorrow. It could be a market mover.
Mortgage Bonds continue to hover in mid air between the floor of support, which was tested several days last week, and overhead resistance. Bonds will be responding to both stocks and the added supply today, which could result in a jittery day.
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