February 12th, 2014
February 12, 2014; 9:18am
Interest rate trends: Today – Higher; 10 days – Higher; 25 days – Flat
Interest rate recommendation: Locking bias
Interest rates continue to worsen while the stock markets climb back. There are no economic reports today to provide direction, but the U.S. Treasury will auction a whopping $24 billion in 10 year notes. Yesterday’s 3 year note auction was well received, but still did not help mortgage bonds. Today’s longer term auction will likely be worse than yesterday’s auction so we don’t expect any good coming from it either. We maintain our locking bias. The one bit of relief is that MBS’s are technically sittin on the 200 day moving average, which should be a strong floor of resistance. Tomorrow we will get Retail Sales reports. Have a great day!