Afternoon Wrap

The Treasury market is set to close-out a positive day as a half-point gain in price has pushed the Ten-Year yield down by about 5 basis points to 0.60%. Credit markets continue to trade more reactively to central bank policies and actions and less to fundamental economic performance data. Earlier in the day, reports of appreciating home prices in February received little attention as participants realize that February represents a completely different environment.

The Conference Board’s report of the plunge in its Consumer Confidence Index was widely expected and a slight uptick in Consumer Expectations was an unanticipated bright spot. West Texas Intermediate will wind up below $13 while gold has slipped about $5 on the day to around $1,708.

Tomorrow promises to be a big news day with the first estimate of Q1 GDP due out at 7:30 CDT. A Bloomberg survey suggests a decline of around 3.6%, but other estimates vary far and wide. The FOMC will also be wrapping up the meeting that started today and the statement release and press conference are scheduled for tomorrow afternoon.