Market Analysis

The bond market started stronger in the morning on a weak December New Home Sales report, but lost ground late in the afternoon after the post Federal Reserve Open Market Meeting statement.  The Federal Reserve maintained its position that the mortgage backed security purchase program will end at the end of March.  They continue to leave the door open to reevaluating this position.

In today's economic news, December's New Home sales were down 7.6% to an annualized pace of 342,000 units.  The US Treasury auction of $42 Billion in 5 year notes was well bid.