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
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.
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