Associate Broker, CDRS, e-Pro Realtor®
6/11/09
Treasury and mortgage prices have seen a nice boost today following the two week agonizing trend of continuously lower prices, higher rates. Rates are rising due to massive treasury supply and signs of economic recovery, while the rise in rates may impede the economic recovery. Today’s positive market direction is a result of a very well bid treasury auction, with unexpectedly good participation by foreign bidders. This is a very positive development as it shows foreign investors are committed to the U.S. Treasury market. Stocks are also higher as lower borrowing rates reduce the cost of doing business. 6/15/09 Rates are continuing lower today as mortgage and treasury prices rally. Treasuries are climbing after the Japanese and Russian Finance Ministers expressed confidence in the U.S. dollar and U.S. securities. The economic releases last week were not as positive as the previous week and have helped stop the freefall in the treasury market as well. There is quite a bit of economic data on tap for this week including May’s Producer Price Index on Tuesday, Wednesday has May’s Consumer Price Index and Leading Economic Indicators will be released on Thursday. Next week, the Federal Open Market Committee (FOMC) will meet to discuss next steps. 7/27/09 Market Comment The US Treasury will auction $115 billion of 2, 5, and 7-year notes this week. The additional debt supply may pressure rates. With so many data releases expect the market to be very volatile.
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