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 the FOMC meeting coming up next week, and the mixed economic data that has started off the New Year.

The focus of the market has recently been turned to the FOMC meeting next week; particularly, whether or not they will decide to continue to reduce asset purchases. It was first thought that the Fed would reduce the progress of its asset purchases by as much as 10 billion dollars at each meeting. However, December's employment report came in at 74,000, which is well below the expected number. This conflicts with other positive economic data that has trailed in, such as the ISM Manufacturing Survey.

The unemployment rate has declined to 6.7%; a .3% reduction. This is thought to be the result of 347,000 people leaving the work force, bringing the participation standard to its lowest level since 1978. The long-end in Treasuries has been out-performing. The 10-Year Treasury Yield has moved back into the 35 point trading range that was observed in November. The consensus is that the FOMC meeting will draw an agreement to cut back on asset purchases by 10 billion/ month and that this will cause the rally seen in treasuries to be just a passing phase.

Some of the trends created in 2013 have now carried over into the new year. One area of value is AAA CLO's seen in the spread sector. The credit curve has flattened out in this area because of a 50 point spread widening. This is thought to be a result of the Volcker rule, and has created some ambiguity as to whether banks will be able to buy this product and keep what they already have.

To draw a more in depth understanding of the popular trading trends for the new year, and the impact that the FOMC meeting will have on our economy, please tune into Wells Fargo's latest video.

Please visit the following link to view the video:

http://www.wsw.com/webcast/wav/

Wall Street Webcasting
Heather Capizzi, 201-683-2100