My New Blog

The Federal Reserve cut the key interest rates this afternoon by .75%.  This brings the Prime rate down to 3.25%.  This usually does not help the bond market because on this news the stock market really rallied....BUT luckily today- it was a double whammy.  The Fed said they were going to buy mortgage back securities and Pimco- the largest bond holder said it would by bonds as well.  This is what is spurring a huge rally in the bond market which is driving rates lower.  We are trading at the all time highest levels- so we may see the bonds pull back a little - but looks like lower rates ahead. We are definitely sub 5% at this point.