Market closed positively so a little improvement

MBS   +19/32 @ 103.13      10 Yr T    +22/32 @ 2.1510       DOW  +180@ 15176

 

After climbing roughly 75% in six months, the Japanese stock market has dropped more than 20% recently. As a result, investors have been shifting assets out of Japan, helping US stock and bonds markets. In addition, a noted Fed watcher wrote an article which added fuel to the rally in US stocks and bonds late in the session. Hilsenrath's article suggested that the Fed does not want investors to shorten their expectations for when the Fed will remove monetary stimulus. He thinks the Fed will try to extend those expectations at Wednesday's meeting. The Fed's bond buying program is considered to be positive for both stocks and bonds. Today's economic data had little impact. Weaker than average demand for the 30-yr auction also caused little reaction. Tomorrow, PPI, Industrial Production, and Consumer Sentiment will be released.