Austin mortgage borrowers: best to take a conservative approach given the amount of volatility we expect
Austin mortgage borrowers: best to take a conservative approach given the amount of volatility we expect.
Austin mortgage borrowers: best to take a conservative approach given the amount of volatility we expect.
Best bet for Austin mortgage borrowers is to take a defensive posture. With so much bond-friendly news priced in, the risk reward for better mortgage pricing is just not there, folks.
Details of the 21 billion 10 year note auction just [...]
Word has it that Greek banks have asked the government to use the remaining 17 billion Euro of funds allocated to back up the country’s banking system to be put to work as a government guaranteed bond program. The move would allow for a better haircut when borrowing from the European Central Bank. Trouble is, Greece still need more money to float the country and skeptics are abound, still viewing them as the poster child of the PIGS nations.
All of the above are making mortgage pricing swing like a monkey in a tree. In the short run, it’s anyone’s guess where pricing will go.
Bernanke’s Fed Exit strategy - pay particular attention to the fact that they continue to anticipate concluding the purchase of MBS and Agency Debt Securities at the end of March. Weather concerns have shut down most of the Mid Atlantic and Eastern seaboard, adding to light volume and a volatile trade. T
Results just hit the tape with a 3.0 to 1 [...]
Just a quick update as we are minutes away from the results of today’s 40 billion 10 year note auction. The market has slipped a touch, primarily due to hedging in front of the issue. 10 year note down 8/32’s (yield 3.75%), MBS off 5/32’s, and stocks up 33 points on the Dow. The $10,000.00 question is who will or will not show up to buy the auction.
Currently we are trading fast money conditions with the 10 year note down 12/32’s (yield 3.44%), mortgage backs off 9/32’s, and stocks off 4 points. Unless we get a rebound quickly, a price change for the worse will be in vogue.
The market has been under a little pressure all day, primarily due to hedging for today’s 10 year note auction (21 billion). The market seems to be set up for consolidation, but one that will take the yield only a few bps higher. Traders will most likely buy the dip and then repeat the process tomorrow for the 30 year auction (13 billion).