The big news of the morning - Goldman Sachs downgraded Citigroup to a "Sell" from a "Hold", saying that Citi could have to write off an additional $4 Billion due to sub-prime mortgage related losses. This announcement has applied pressure on Stocks, which in turn has boosted the Bond Market slightly higher.
Tomorrow at 2pm ET, the new and improved, "more transparent" Fed is slated to release the first of its new economic forecasts as well as the Minutes from its October Meeting. The new quarterly forecasts from the Fed will include their projections on Overall and Core Personal Consumption Expenditure, Real Gross Domestic Product and the Unemployment Rate. The Minutes and forecasts could have an impact on the market tomorrow, especially as Traders look to handicap the December 11th Fed meeting for direction on whether the Fed will cut or not.
Technically, Bond prices continue to ride the "Up Escalator", and are supported by both the 25 and 50-day Moving Averages. I will continue to Float as long as Bonds remain above this floor.
In observance of the Thanksgiving Holiday, the Bond market is scheduled to close early this Wednesday and Friday at 2:00pm ET with a full-day close on Thursday.
Quick correction to Friday's Update, which made reference to the President having the power of a line item veto. The line item veto no longer exists due to a Supreme Court ruling. The United States would have to pass a constitutional amendment in order to restore a Presidential line item veto.
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