This is just a quick post with some overnight news. I’m up very late working on another project, and have an obligation in the morning tomorrow; and may not get a chance to post. So, I’ve done a quick look at the news, and post this with what’s happening at this hour that may be a market mover for anyone who sees this in the morning.
The EU has agreed to a $61 billion dollar loan to assist Greece out of it’s situation. The interest rates for this area at a low 5%. This is good news for Greece, and indeed, for the whole Euro zone AND the world, for that matter. For the sake of bonds, however, this will draw money away from the US debt, thus suppressing the prices (increasing yield or interest rate.)
What will happen first thing in the morning is unknown to me; but this may be something that you want to evaluate, and consider locking floating rates first thing. Yield is up a few ticks already, some several hours before the market opens here.
In US news, Retail purchases increased 1.2 percent in March, the biggest gain in four months — also a market mover to higher interest rates, as it portends a “heating up” economy (which traditionally gets reined in by higher Fed-set interest rates.)
