If you were holding your breath, it’s ok to exhale. The paper crossed the screen at 3.092% with only a baby tail of .03 bps. Indirect bidders took 61.2% of the issue, a very strong number. The bid to cover was also decent at 2.74 to 1. Overall, let’s give it an A-. Looks like the Treasury scored a hat trick with this week’s auctions. From our speculative bias, we see investors looking for a correction in stocks as all the good news this week has done little to spark a continued rally. With valuations (stocks) below current S & P levels, it’s hard to find a reason for stocks to do better. If our bias is true, look for treasuries to be a safe haven investment and Austin mortgage pricing to improve in its wake. Could be the reason that 109 billion in paper has been sold without a hitch. Still a tricky call so be careful out there. Currently, the 10 year note is unchanged, mortgage backs down 1/32nd, and stocks down 3 points on the day.
Looks like the Treasury scored a hat trick with this week’s auctions
August 27, 2009|Austin Mortgage Market|
About the Author: Max Leaman Austin Mortgage
Great Rates, Low Fees, Close on Time® – (800) 301-3405 Since 2001, Leaman Team has helped clients to purchase, refinance and renovate. The biggest distinction between lenders is their honesty, customer service, and ability to close on time.
September 28, 2018
September 27, 2018
April 27, 2017