Friday’s BLS number will now be the focal point - ADP tends to be more optimistic and folks will want to see the participation rate.
A couple other items added to the positive vibe today. 58% of the Greek bondholders have agreed to take the massive cuts in face value and interest rate on their notes, which moved the country a step closer to restructuring its mess. Again, this isn’t the end, but a positive step.
The most important piece of data that “snuck” out today was that the FED may be evaluating a new type of QE that stays focused on the ailing housing market, but supposedly curbs inflationary effects.
The Wall Street Journal reported that the new action might include printing more money to buy long term treasury bonds and mortgage backed securities for which they would receive interest, but then they would effectively tie up that money by borrowing it back (from themselves) for shorter durations and paying interest at a lower rate.
Essentially the proceeds from bonds that are bought by the FED are restricted in terms of where that money can go and in essence forcing the sellers to swap into shorter term debt. That’s the way I initially see it anyway.
This drives down long term bond rates and encourages risk taking and lending. |
发表于 2012-3-8 00:38
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