Europe continues to way in
Mortgage Bonds are trading lower and are off their best levels being weighed down by today's $35B 2-year Note auction and after hitting record highs yesterday.
Mixed corporate earnings reports here in the US and the ongoing saga in Europe have sent Stocks lower this morning. Late yesterday, credit ratings agency Moody's assigned a "negative" outlook on Germany's Aaa debt given that the country could be on the hook for a large portion of the debt in that region.
Technically, Mortgage Bond prices hit all-time highs yesterday and have pulled back this morning due to investors taking some profits and under the weight of the Treasury auctions this week. I will continue to recommend a Floating stance in the longer-term, with a Locking bias in the short-term.
Leonard Winslow
Direct: 434-760-2580
E-fax: 434-688-0496
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
leonard.winslow@newamerican.com
web: www.newamerican.com/leonard.winslow
License #MLO-4817VA-NMLS #265272
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