Fed and Greece continue to dominate the market’s attention

The Fed and Greece are the two issues that continue to dominate the market's attention. In tomorrow's Fed press conference, Yellen is widely expected to make it clear that rate hikes are coming with most bets on September - unless something unusual happens. 

The Fed has stated that they will be data dependent. The employment data has been strong, but the latest industrial production report was weak. Although housing starts were down 11.1 percent, forward looking building permits were on fire, surging 11.8 percent, the fastest pace since 2007. Given the mixed (although improving) data picture, investors will be scrutinizing Chair Yellen's comments and tome more than ever. 

As for Greece, the game of chicken will persist while Greece bargains for more latitude instead of instituting actual economic reforms. It is quite possible that they will play right until plans are drawn up to kick them out of the euro before capitulating at the last minute. 

Investors should expect interim volatility. Good old high quality government backed securities like GNMA's historically have done well in volatile markets and under a variety of interest rate environments. - said Voya Investment Management