March 13th, 2014
March 13, 2014; 9:22am
Interest rate trends: Today – Lower; 10 days – Flat; 25 days – Flat
Interest rate recommendation: Cautious float
Mortgage bonds (MBS’s) started the day out worse on the slightly better than expected economic news, Retail Sales came in only slightly better than expected and initial jobless claims came in lower, but MBS’s have rallied since and are currently +12bps! With this current movement better, we will continue our cautious float recommendation and see where we will go. The stock market was up this morning, for the first time in 4 days, but has since turned negative, thus helping mortgage bonds. The U.S. Treasury is selling $13 billion 30 year notes today, these auctions rarely do well, so that might cause some issues in a few hours from now, but we will keep watching. Have a great day!