Australian Central Bank raised interest rates .25%, giving a clear signal that their part of the world is starting to recover and that taking fiscal responsibility is the prudent course. Wonder what Bernanke is thinking?

Quiet day in the making as stocks hold most of their gains and bonds, notes, and MBS hold their shade of red.  Nothing huge here as the 10 year note is off 5/32’s (yield 3.24%) and mortgage backs on the 4.50% coupon are off a couple of 32’s.  Earlier today, the Australian Central Bank raised interest rates .25%, giving a clear signal that their part of the world is starting to recover and that taking fiscal responsibility is the prudent course.  Wonder what Bernanke is thinking?

No news today but we did have a 3 year note auction.  39 billion hit the tape at 1.445% with 49.1% going to indirect bidders.  The issue did have a baby tail (.5 bps) but nonetheless had good sponsorship.  Tomorrow will feature 10 year notes (tips) with Thursday’s 30 year bond auction cleaning up the week.  As we mentioned yesterday, 10 year notes backing up to 3.25% and 30 year bonds at or slightly above 4.0% seems to be our destiny before the paper is taken down.  We see the market as cautiously optimistic.

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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