Market Comment

Mortgage Bonds are still holding about support at the 200-Day Moving Average, after digesting lots of news.

Yesterday, the Fed confirmed that its Mortgage Backed Security purchase program will end March 31, 2010. In today's news, Initial Jobless Claims showed that the labor market is still struggling, as last week's claims were higher than expected. Durable Goods Orders also disappointed, coming in much lower than anticipated.

I recommend floating for now, as Bond prices try to hold above the 200-Day Moving Average. But be prepared to lock if the situation changes, especially with another Treasury auction on tap this afternoon.

Leonard Winslow, New American Mortgage, Charlottesville
434-760-2580 (cell)
leonard.winslow@newamerican.com
www.newamerican.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112

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