Daily Market Update 10/5/10

Rates held steady Tuesday in volatile trading. Overnight, the Bank of Japan unexpectedly cut interest rates to nearly zero and announced a $418 billion monetary easing program to boost the economy. Bonds and mortgage-backed securities rallied on the news, but later gave up those gains following a strong opening in the stock market. In economic news, the Institute for Supply Management services index rose to 53.2, beating expectations. Readings above 50.0 indicate expansion in the services sector of the economy. No other data will be released today.

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