Continued selling in a thin market has taken the yield on the 10 year note right back to the highest level in months (3.37%)

Continued selling in a thin market has taken the yield on the 10 year note right back to the highest level in months (3.37%).  The selling has come out of thin air, with mortgage bankers selling supply into the down trade.  With Junior traders about to take the reins at fixed income desks, thin market volume, weak U.S. dollar, and treasury supply coming next week to the tune of 100 billion, traders are getting flat or short, unwilling to take any interest rate risk into the weekend. 

 

The chart supports this bearish condition as the 60 minute pattern has created an outside day down, always bearish in nature.  Currently, they are pounding the screen, down 1 and ½ points on the 10 year (3.37% yield, MBS down 17/32’s, and stocks down 178 points on the Dow.  Don’t expect a white knight until sometime next week.

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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