Blogs

I watched the paint dry and the grass grow today. It was slow and you had to watch very closely to see it; once I actually saw a blade of grass sit up and wave in the wind. There was nothing better to do today as the financial markets once again had little movement. Not much to get investors and traders motivated with no economic data and nothing of direct consequence to change the malaise. Lots of talk that China's inflation levels are increasing but we reported that yesterday; old news, but media needs something to talk about.

The back and forth trading continues today; up one day, down the next is the character of this market recently. The 10 yr note down 5/32 at 9:00, mortgage prices unchanged and the DJIA and other key indexes unchanged. At 9:30 the DJIA opened +5, the 10 yr -7/32 at 3.73% +3 BP and mortgages -2/32 (.06 bp).

It has been another quiet day in the financial markets with not much movement since the open this morning. Mortgage continue to get the play and have improved from the early morning pricing levels. There was no real news, no economic reports and nothing to get much attention.

Interest rates doing better in early trade this morning on weaker stock indexes. Seems like its every other day for the bond and mortgage markets, up one day, down the next. At 9:00 the 10 yr note +8/32 after being down 8/32 yesterday, its yield at 3.68% same as last Friday. Mortgage prices at 9:00 +4/32 (.12 bp), the DJIA index -20 points. At 9:30 the DJIA opened -7, 10 yr +8/32 and mortgages +4/32 (.12 bp).

Some very minor improvement in mortgage prices from 9:30 this morning, but not enough for us to float overnight. We suggest continuing to lock overnight and not float; the risk is too high.

A weaker start in the rate markets this morning with the stock indexes unchanged at 9:00 this morning. In Asia stocks rallied on better employment reports, in Europe retail sales were better than expected. The decline in US jobs was less than expected and the unemployment rate held unchanged at 9.7%; Asia is getting a boost this morning on the increased view that US job markets have likely bottomed. At 9:00 the 10 yr note -10/32 3.71% +3 BP, mortgage prices -7/32 (.22 bp). At 9:30 the DJIA opened +5, 10 yr note -9/32 and mortgage prices -4/32 (.12 bp) frm Friday's close.