43 billion of 2 year notes hit the block at 1.034% with 45.2% taken by indirect bidders and those foreign central governments we talked about earlier. The auction was right on the screws (no tail), producing a bid to cover of 3.23 to 1. Very strong but then again, it’s short term paper with a maturity of 2 years. Nonetheless, there is still an appetite for Uncle’s paper which is a good thing for us. Mortgage backs have held their ground, up 3/32’s on the day.
Just a heads up as the market has started to [...]
We see the selling as shallow into the later part of the week and then a rebound/rally to deliver better mortgage pricing as we close the book on July
Both stocks and bonds opened on the weak side this [...]