Fed funds opened at 0.06% as the month comes to a close Fed funds opened at 0.06% as the month comes to a close. Yesterday's rate ranged from 0.05% to 0.3125% with a 0.09% effective. Look for an increase in volatility on month-end. The current 3-year note trades with the lowest rate in the repo market at -0.60% following this week's supply.
Oil Action: NYMEX crude is down 67 cents Oil Action: NYMEX crude is down 67 cents at $99.60/bbl, as OPEC production and the dollar strengthens, and as U.S. demand remains relatively soft. The contract sound support ahead of $99.00, before rallying to current levels. Sources expect fund offers to materialize into the $100 mark.
Week of 8/8 EIA Petroleum Status Report to be released at 10:30
Treasury Closing Summary: yields were jolted sharply higher by data Treasury Closing Summary: yields were jolted sharply higher by data and not the FOMC Wednesday as Q2 GDP was the star of the session. Q2 GDP growth rebounded 4.0%, which was as unexpected as the 2.9% plunge that was reported in the third release for Q1. The hurt to the bond market was intensified given the impending FOMC announcement. But in keeping with Yellen's dovish leanings, the Fed indicated it is in no rush to begin rate lift-off. Rates remained elevated, but Wall Street managed to pare its losses.