40 billion of 5 year notes hit the auction block with a not so hot response

40 billion of 5 year notes hit the auction block with a not so hot response.  Indirect bidding wasn’t bad at 48% but the issue produced a 3 bps tail.  Give this one a C.  The lack luster auction gave traders a reason to go palms out (turn sellers), taking the 10 year note down 12/32’s in a nano second.  Mortgage backs followed suit, falling 8/32’s in the same time period.  Market jitters are in play as the Fed is 45 minutes away.  Buckle up!

About Max Leaman Austin Mortgage

GREAT RATES, LOW FEES, CLOSE ON TIME™ ---- 2012 Ranked #1 Austin Residential Mortgage Lender (Austin Business Journal) 2010, 2011 & 2012 Five Star Professional (Texas Monthly) 2009, 2010, 2011, 2012, 2013 PrimeLending Chairman's Circle Award 2009, 2010, 2011, 2012 Scotsman Guide Top Originator (Top 200 Mortgage Professionals in U.S.A.) Better Business Bureau "A+ Rating" National Lender Rankings (Scotsman Guide): Top Purchase Volume (No. 10) Most Loans Closed (No. 32) Top Dollar Volume (No. 88)

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