Bonds, notes, and mortgage backs are flat with volume running at its lowest level in 3 weeks. The tug of war that has us trapped pits stocks that just won’t fade (Dow up 45 points) on one side and Greek sovereign debt issues that just won’t go away on the other. Matter of fact, Fitch just downgraded their debt of BBB-, right where subprime paper should have been in 2006 when the rating agencies had it at triple A.
On a side note, Philadelphia Fed President Plosser (who will not be a voting FOMC member until 2011) said: "Looking ahead, I see an economy that will be growing over the next two years, which means real interest rates will be rising… the federal funds rate should be permitted to rise with them." He said that higher rates may be needed before the unemployment rate and resource utilization return to desirable levels.
Monday is shaping up to be a good days for [...]
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 [...]
In our opinion, this is a true reflection of the economy. One that has manufacturing falling hard and fast, coupled with increasing unemployment.
The winds of change have once again blown through the [...]