Just a quick update as early morning gains are starting to fade. At one time we had mortgage backs plus 5/32’s on the heels of a jump in Weekly Unemployment Claims (plus 18K to 460K). Stocks were also supportive as both the big board and the Naz opened in the red. Stocks have cut their losses in half and now the focus has turned to today’s 30 year bond auction. With the when issued pre-auction price trading right at 4.75%, valuation seems reasonable but worries about Indirect bidders is front and center. The average for this auction has been 40% taken by the Indirect types. Last month’s auction however was a disaster with only 23.9%. Technically, we’re right up against the down trend line. This is where the battle of bulls and bears will take place and the weapon of choice seems to be the 30 year bond auction outcome (12:00 cst). Just a heads up as traders are getting a touch nervous.
This is where the battle of bulls and bears will take place and the weapon of choice seems to be the 30 year bond auction outcome
About the Author: Max Leaman Austin Mortgage
Great Rates, Low Fees, Close on Time® – (800) 301-3405 Since 2001, Leaman Team has helped clients to purchase, refinance and renovate. The biggest distinction between lenders is their honesty, customer service, and ability to close on time.
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