Interest Rate Report for Wednesday May 28, 2008

Mortgage bonds have located a bottom at the important 200 day moving average.  If this level of support is broken then this level will act as the new ceiling.  It is likely that we will see some recovery if bond prices lift off this strong level of support.  These are technical signals but they are most often correct.

 The surprisely improved reading in durable goods gave stocks a modest boost and added more selling pressure on mortgage bonds.

Today the Treasury Department will auction off $30 billion of 2 year notes and this may sway the markets later in the day.

 For now we are floating as we see how the floor of support at the 200 day moving average plays out.

 My business is built on solid advice not just price.

Thank you for listening to www.ContactHerrick.com .  We will have another report for you, your family, your friends and your important business contacts later this week. 

A quote from JFK

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