Just a quick note before the results of today’s 42 billion in 2 year notes (auction). Results will hit the tape at 12:00 pm cst. Last month, this auction did not go well, sending yields higher on poor investor interest. Given the positive economic news (Case Shiller and Consumer Confidence), you will want to stay tuned for the results. Technically, yesterday’s rally was nice but did little to eliminate Friday’s outside day down chart formation. Pricing is now in the in the middle of a three day range which will keep strong directional moves from happening. Unless something is way out of whack with the 2 year auction, expect Austin mortgage pricing to stay close to home. Currently, the 10 year note is down 3/32’s (yield 3.51%), mortgage backs off 2/32’s, and stocks up 80 on the big board.
