Treasuries Update

Initially, the market will be focusing on the Existing Home Sales, the real event today is the FOMC statement.

However, traders will be keeping an eye on the Existing Home Sales, because if they do not show the same stability as has been seen in Housing Starts, then housing market bulls will have to rethink their projections. This could provide some short term volatility to markets ahead of the announcement.

The meeting today is, once again, all about the tone that is adopted. We are market neutral going into the announcement, and will react to any change in tone by the Fed.