Monday Market Commentary

by Alex Stenback on November 28, 2005

23_nov_rates_1
                                                         Graphic Courtesy MSNBC
Last Week
Rates dipped slightly last week after The bond market gained some traction from the release of the Fed minutes, which seemed to indicate the Fed is about done hiking interest rates and may be prepared to take an extended pause after the next hike or two.  The key phrase: “Some members cautioned that risks of going too far with the tightening process could also eventually emerge.”
This Week
All eyes on the employment report, which prints Friday.  Other notable releases this week:  Durable goods, consumer confidence, new home sales, gross domestic product, the Fed “Beige Book”, income, outlays, and ISM index data.  Though we like the way the market is positioned here, it will likely take some added fuel to move rates lower (stock market sell-off?  Unemployment spike?), so we remain cautiously optimistic about the prospect of lower rates.
· This Week’s Economic Calendar [barrons.com]

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