News out of Europe put a dent in the Bond rally and cut into Stock losses, though Bonds did have a positive day. The late day sentiment could carry over into tomorrow’s trading as the news comes out of Europe.
MARKET WRAP: The Bond markets rallied today after last week’s slide but the gains were cut after news from Europe said the IMF, EC and the ECB (Troika) may be close to a deal to bailout Greece. But Mortgage Bonds did end the day to the upside as the 3.5% coupon closed at 101.59 up 50bp, although below resistance. The Dow lost 108.08 to 11,401.01 but it was down 260 points during the session. The S&P 500 fell 11.92 to 1,204.09 while the Nasdaq dropped 9.48 to 2,612.83. There were no economic reports today. Oil settled at $85.70/barrel down $2.26. Tomorrow, Housing Starts and Building Permits will be released. The Fed will begin its 2-day meeting tomorrow.