Looks like the Treasury scored a hat trick with this week’s auctions

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.

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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