FOMC Tomorrow - Busy week

As you may know, the Fed's are meeting today.
It's a two day meeting where they'll announce tomorrow.
Statement will be released at 11:15 Pacific time.
I'll post a copy of it here.

So there's a pause in the markets today.
We've seen the 10 yr. react in a general upwards direction.
It opened this morning at 4.87%

It's still a matter of supply and demand but a simple and general rule to remember when it comes to rates is this:

Good economic news = Higher rates
Poor news = Lower rates

It's a gross generalization, and it still boils down to supply and demand, but it's something to put in the back of your head and think about.

There's a bunch of info hitting the markets this week.
Not only is it still Earnings Season, there's a ton of data to be reported this week.
Here's a cut and paste from a mortgage newsletter I get.
Most all of these play into what happens to rates!

Week of January 29 - February 03

Date	ET	Release	For	Actual	Briefing.com	Consensus	Prior	Revised From
Jan 30	10:00	Consumer Confidence	Jan		110.5	109.5	109.0
Jan 31	08:30	GDP-Adv.	Q4		3.0%	3.0%	2.0%
Jan 31	08:30	Chain Deflator-Adv.	Q4		1.5%	1.7%	1.9%
Jan 31	08:30	Employment Cost Index	Q4		0.9%	1.0%	1.0%
Jan 31	09:45	Chicago PMI	Jan		52.0	52.0	51.6
Jan 31	10:00	Construction Spending	Dec		-0.2%	0.0%	-0.2%
Jan 31	10:30	Crude Inventories	01/26		NA	NA	789K
Jan 31	14:15	FOMC policy statement
Feb 01	08:30	Personal Income	Dec		0.5%	0.5%	0.3%
Feb 01	08:30	Personal Spending	Dec		0.7%	0.6%	0.5%
Feb 01	08:30	Initial Claims	01/27		310K	NA	325K
Feb 01	10:00	ISM Index	Jan		52.0	51.5	51.4
Feb 01	17:00	Auto Sales	Jan		5.4M	5.4M	5.6M
Feb 01	17:00	Truck Sales	Jan		7.3M	7.1M	7.2M
Feb 02	08:30	Nonfarm Payrolls	Jan		135K	145K	167K
Feb 02	08:30	Unemployment Rate	Jan		4.5%	4.5%	4.5%
Feb 02	08:30	Hourly Earnings	Jan		0.2%	0.3%	0.5%
Feb 02	08:30	Average Workweek	Jan		33.9	33.9	33.9
Feb 02	10:00	Factory Orders	Dec		NA	1.5%	0.9%
Feb 02	10:00	Mich Sentiment-Rev.	Jan		98.0	97.8	98.0

Back to the Feds:
With each new report coming out, CPI, PPI, GDP, The Jobs Report, Existing Home Sales, New Home Sales, and so on, the likelihood of the Feds lowering rates anytime soon has literally vaporized.

So, will they raise instead?
Don't expect it.
At least not this time.

Once again it's going to be not what the Feds do, it's what they say.
It's in the announcement that Fed Watchers will pay most attention.

For a live view of the 10 yr. I put 4 different charts on one page here: http://www.patagoniafinance.com/bondlook.html

The charts come from Yahoo Bonds.
I have Today, the last 5 days, the last 3 months, and the last 2 years.

Remember, the 10 yr bond isn't what creates rates, but long term mortgage rates mirror what happens to the 10 yr. that's why we watch it.