FNMA 30-YR 4.5%
Previous close 101.094
Opened down 0.19bp @ 100.906
Economic Data:
EUR / USD 1.3575 Up 0.0014
USD / JPY 89.140 Up 0.0010
GBP / USD 1.4970 Down 0.0021
OIL 79.34 Up 0.64
Gold 1,123.90 Up 5.60
Key Economic News:
Only auto sales, weekly confidence, and on Fed speech....
Late morning/early afternoon: Lightweight vehicle sales for Feb...another setback? By most accounts, vehicle slipped a bit futher last month, both for domestically produced and imported vehicles.
For total sales: median forecast (of39): 10.4mm, ranging from 9.8mm to 10.9mm; last 10.82mm.
For domestic only: median forecast (of 18): 8mm, ranging from 7.4mm to 8.8mm; last 8.19mm.
14:00: Minneapolis Fed President Narajana Kocherlakota speaks on the economy and financial regulation...to a business conference in Minneapolis. He is not a voting member currently; he will be in 2011.
17:00: ABC consumer comfort index...mired in the deep. This index fell another point last week, to -50.
Advice:
With only vehicle sales to try and help in the late morning, I can see only downside risk today.
I would lock short and long term deals today.
My position on MBS has changed to neutral today (Sell long position).
Expert Commentary by Neil Trenerry
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