Blog

Daily Market Update 1/20/09

Interest rates crept higher Tuesday on increased estimates of the supply of debt that will be issued this year to provide economic stimulus and battle the recession. Treasury issues were hardest hit, but mortgage-backed securities’ prices also fell. Weakness in financial stocks dragged stock indexes lower. Several fund managers have advised selling Treasuries in recent days due to inflationary concerns, although the pace of consumer price inflation remains low. Some traders are betting the Federal Reserve will buy Treasury debt, along with mortgage-backed securities, to prevent borrowing costs from rising. No economic data will be released today.

Leave a Reply

Your email address will not be published.

Back to top