Market update for 7-12-2012

Mortgage Bonds are trading slightly higher on escalating concerns of a global economic slowdown and on further proof the U.S. economy is "muddling" along.

In economic news, Initial Jobless Claims fell to the lowest level in four years and is capping Bond prices today. In addition, the Treasury is set to sell $13B 30-Year Bonds and the added supply is limiting any significant moves higher.

The fundamental trend, of escalating uncertainty and weak economic news, continues to be the Bond Market's friend. For this reason - I will continue to recommend the long-term floating position. However, much like yesterday, when prices moved lower for seemingly little reason, I will remain with a locking stance 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

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