Market Comment

Mortgage Bonds are continuing to improve so far today, following the pricing gains seen since Friday's weak Jobs Report. Stocks are also trading sharply higher so far today after the G-20, a group of finance ministers and central bank governors from 20 world economies, pledged to keep aid flowing to global economies until a recovery was assured.

There are no economic reports today but there is plenty of supply hitting the market via the Treasury auctions, which could weigh on Bond prices. Also on Friday, President Obama signed the extended and expanded Homebuyer Tax Credit.

I recommend floating for now, but I will be watching closely to see how today's auction results impact trading.

Leonard Winslow, Dominion Trust Mortgage
434-760-2580(cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.