Tuesday Market Commentary

by Alex Stenback on December 27, 2005

                                                         Graphic Courtesy MSNBC
Last Week
Rates last week were virtually unchanged to VERY slightly improved on light trading volume for the holiday week.
This Week
Should be another short week of lighter than normal trading volume – though this can result in a volatile market, so don’t just assume rates will remain static because nearly everyone is away. As we write this entry the yield curve is slightly inverted.  Most experts take this yield curve inversion as an economically bearish signal that may portend lower rates.  Given the time of year, we won’t draw any firm conclusions (inversion could also mean rates are poised to jump,) but it is worth watching once market activity returns to normal next week.  Consumer confidence prints on the 28th.
ยท This Week’s Economic Calendar [barrons.com]

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