Look at it this way, if you had 500 million or so to invest what would you do? Buy stocks after a 55% run from the bottom? Loan money to others or increase company investment, betting on a V shaped recovery? Or, buy treasuries which yield a real rate of return around 4.75%. Give me Uncle Sam’s full faith and guarantee any day or at least until there is no doubt about an economic recovery.
After several weeks of economic announcements generally exceeding forecasts, weaker than expected labor and manufacturing data, along with comforting comments from Fed officials about inflation, helped mortgage markets this week. Reacting to the data, investors shifted funds out of the stock market and into bond markets, and mortgage rates ended the week at the lowest levels since May.
Once again, it’s time for the “Mother” of all economic [...]
Just a quick note on this pre-Employment report day. Markets are quiet and settling into a holding pattern before Friday’s 7:30 am cst release. Bonds, notes, and MBS giving up a little ground (MBS down 9/32’s) after nice gains the past few days.
Stocks have gotten off on the wrong foot, starting in [...]
Hard to tell what’s going on in the Treasury/MBS market [...]
From our technical view, the chart looks more like “crack the whip” than any type of symmetrical trading. Last Friday caught a bid from month end buying (portfolio extension needs), Monday gave it all back as stocks traded and closed above 1000 on the S & P chart, and today’s rally has been derailed by Pending Home Sales.
After a roller coaster month, started by the surprise payroll [...]
Mortgage backs unchanged, 10 year note unchanged, stocks up 150 [...]
Pending Home Sales, an index that measures purchase agreements signed [...]
