The tenuous political and economic balance in Greece and other heavily leveraged European countries has suddenly rocked the mortgage bond markets this week.
The US Treasury auctions held Monday and Tuesday were met with abject disdain. Buyers were virtually non-existent. Bonds traded 62 bps lower on Tuesday forcing mortgage rates up by .25% over last Monday’s open. Guru’s portend further increases as a confirmation that inflationary pressures are real.
Prospects should be prepared to lock into new rates after the current paranoia is over.
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