Global Pressure
11/30/09 Mortgage Backed Securities are minus 3bp this morning. Global news kept MBS on a roller coaster since last Wednesday. Friday we saw a large sell off in the equity markets. Monday looked to be a follow through of Friday until Chicago PMI came in better than expected. The news halted the sell off in equities and turned the market positive. We have seen that momentum stall.

The US has been dependent on the support of foriegn investors to purchase our...

Happy Thanksgiving
11/25/09 Mortgage Backed Securities are plus 6bp this morning. There is no more data being released today. Interest rates will end the week little changed. I have posted the high inpact news for next week at the bottom of the page. Next week should be a busy week. This report will not be updated on Friday the 27th.

Interesting numbers:

1 out of every 7 homes is in foreclosure. 1 out of every 4 homeowners owes more than what the property is...

Bulls In A China Shop
11/23/09 Mortgage Backed Securities are minus 6bp this morning. The Bulls are reacting to the news that home sales rose 10.1% in October. The dollar is also weakening again here this morning. This has caused the stock markets to surge in early trading. The current surge has put early pressure on the bonds.

The manipulation of the stock and bond markets continue. Last month we saw the cash for clunkers stimulus cause stocks to move higher. We see the...

Dell Gets Dinged
11/20/09 Mortgage Backed Securities are plus 0bp this morning. Dell reported after the bell on Thursday and they disappointed. This maybe one of the clearest signs that the recovery is going to be slower than anticipated. The equity markets were hit by the news this morning. We did not see any movement in the bond markets. Next week does not offer much high impact news. We will see a very large supply of Treasury notes being offered next week. The willingness to purchase...

Do I Hear 118 Billion?
11/18/09 Mortgage Backed Securities are plus 9bp this morning. The Treasury will auction 118 billion in new notes next week. Intial jobless claims came in as expected. Philly Fed was better than expected. The chip sector took massive downgrades and is fueling a sell off in equities. There has been no real move in rates this morning. We continue to warn that a weak demand for the auctions next week would spike interest rates. These are some of the lowest rates of the...