Daily Market Update 7/22/09

Rates inched lower Wednesday following yesterday's rally in mortgage-backed securities markets, triggered by testimony from Fed Chief Ben Bernanke. Bernanke, who spoke before the House Financial Services Committee, said the Federal Reserve will keep rates low for an extended period but is prepared to take strong action against inflation once economic recovery takes hold. He also warned Congress and the Administration of the urgent need to reduce the federal budget deficit. Bernanke is scheduled for a second day of testimony today before the Senate Banking Committee, but it is unlikely that market moving comments will emerge. Stocks were mixed. No economic data will be released today.