Rates Rising

The Bond markets opened lower this morning on rumors that the European Central Bank (ECB) is about to start buying the debt of countries like Italy and Spain to alleviate pressure on rising yields. The news is giving Stocks a lift.

The government reported this morning that the first reading on Q2 2012 Gross Domestic Product (GDP) grew by 1.5%, just above the 1.2% expected and lower than the 2% read for Q1. But at 1.5%, it's nothing to write home about.

I will continue to recommend a Locking position in the short-term due to the increased selling in Mortgage Bonds of late. In the longer-term, floating still remains prudent. Have a great weekend!

Leonard Winslow
Direct: 434-760-2580
E-fax: 434-688-0496
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
leonard.winslow@newamerican.com
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