Monday, July 07, 2008
Look up, look down, look all around.... Most of us remember how the last line goes, and it is about the same with mortgage backed securities today. The bond was down as much as 38 Bp when I started writing this article today... then it rebounded up 17 Bp, and now it is up 7 Bp for the day and 31 Bo since rate sheets came out. Without any major economic news today, the bond is taking the lead form the DOW and oil today. With the down giving up its earnings today and oil (thankfully) below $140, it looks (for the moment) like investors are still worried about upcoming 2Q earnings reports. Keeping the positive, the dollar gained some strength on currencies, also helpful in bringing down the cost of oil. We bounced off the level of support on the bond today, which is a good sign for rates staying in the same range for the time being. We are still in a lock mode though with the market as volitile as it is. As always, if anything changes, I will be sure to let you know.
Karl Menzer
435-849-0212
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