We haven't heard much out of new Fed Vice Chair Richard Clarida since he accepted the position, but what we heard today was good.  Well, at least the bond market reaction was good.  His comments ended up setting the tone for the day.

So what did he say?  Nothing too complicated... Whereas Fed Pres Bostic was talking about a "neutral rate" of 2.5-3.5 yesterday, Clarida said we're close to a neutral range NOW.  That certainly seemed to be the biggest deal among his comments, but it was perhaps just as significant that he noted evidence of global economic slowing.  

Stocks and bonds both rallied from there on out.  The fact that the shorter end of the yield curve led the charge was especially telling (that's where we'd expect to see a bond market rally driven by shifts in Fed rate hike expectations).

The week ended with 10yr yields at a key technical level (3.075% at the 3pm close).  The next major technical is arguably 3.00%.  Fannie 4.0 MBS gained more than a quarter point to end in line with their best levels since early October.