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Wall Street Webcasting Presents: Wells Fargo Securities: “September’s FOMC Meeting Appears to Be a “Win” for the Doves.”

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Wall Street Webcasting has prepared and provided for you an exclusive broadcast of Wells Fargo Securities own, Rich Gordon. Gordon is highly recognized for his weekly narrates regarding the fixed income strategy at Wells Fargo Securities (NYSE: WFC). This week, Gordon concentrates on current economic data, following the recent Fed meeting.

The Fed lowered its projections for GDP and employment after their meeting last week, but the phrase “considerable time” remains in the minutes. Treasury yields drifted higher towards the end of the week, closing just under 2.64%. The move of over 30 basis points in yields seen in late August finally paid off and brought more buyers and sellers to the treasury market, raising treasury prices.

Though some investors waited until after the Fed meeting last week to make investment decisions, the backup in yields after the meeting was a strong enough incentive for portfolio managers to put money to work at better levels. Volumes were heavy on Wednesday, Thursday, and Friday. The 5s/30s spread widened going into the meeting, and then flattened out after the meeting. The treasury curve steepened, which gives the opportunity to investors to take advantage of the “roll down the curve” effect between the 3 and 2 year parts of the curve. A spread sector that is thriving well seems to be municipal bonds. They out-performed investment grade corporates by a significant margin in September.

Discrepancies between broad based equity indices persist. The Dow and S&P are large cap and they continue to make record highs. The Russell 2000, on the other hand, is small cap and has maintained a poor performance since the middle of summer. Investors are becoming more selective about what sectors they’re investing in and what financial assets they’re buying.

To hear a more in depth explanation of the most recent economic data, please tune into The Wells Fargo Securities latest video.

Please visit the following link to view the video:

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