Mortgage Bonds are starting the week slightly higher. Bond prices are now near a dual layer of overhead resistance, following the pricing gains seen since Friday's weak Jobs Report.
Stocks are trading sharply higher so far today after the G-20, a group of finance ministers and central bank governors from 20 world economies, pledged to keep aid flowing to global economies until a recovery was assured. We wouldn’t have expected the G-20 to say any less…of course they will want to continue to help until global economic health is restored…but the question remains of what exactly can they do, as rates are already at historic lows around the world? And what will the result of all the economic stimulus be down the road? Economic stimulus is simply injecting money into the economic system on a global level, and once the “velocity of money” increases, we could see quite a rise in inflation down the road.
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