March 10th, 2014
March 10, 2014; 10:01am
Interest rate trends: Today – Flat; 10 days – Flat; 25 days – Flat
Interest rate recommendation: Cautious float
Mortgage bonds (MBS’s) are flat to slightly better this morning with no U.S. economic news and China’s weaker than expected exports. This week is have Retail Sales numbers Thursday and inflation numbers on Friday. Other than that, there are no U.S. economic reports this week. The U.S. Treasury will auction $64 billion in 3, 10 & 30 year bonds this week. With interest rates the same as last Friday and moving just slightly better, a cautious float recommendation is reasonable, but locking is not a bad choice because the lack of economic news can cause the stock market to rise at the expense of the MBS market, causing interest rates to rise slightly. Have a great day!