Tomorrow will be “square up day” where trading is typically quiet before a big release like Friday’s Employment Report

5 year treasuries set a new record low, yielding 1.122%.  The old low was set in December 2008 at 1.18%.  10 year notes traded as low as 2.36% before giving up some ground to finish at 2.39%.  Real money accounts stepped up to buy, especially once the ADP report showed continuing pain in the employment sector.  Rumor also had it that a West Coast Hedge Fund (Pimco?) was in the market buying 2 billion 10 year notes as their position was believed to be underweight that duration.

Mortgage backs performed like dogs, widening out to treasuries while closing up 10/32’s on the day.  We see traders and money managers taking a neutral bias, waiting for pullbacks (consolidation) in the market to buy.

Keep in mind that tomorrow will be “square up day” where trading is typically quiet before a big release like Friday’s Employment Report.  More on that tomorrow.

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)

Comments are closed.