Market Comment

Mortgage Bonds are higher so far this morning. Stocks are taking a breather and the money from Stocks looks to be moving back into Bonds, helping prices move higher.
The Bond has been able to move higher this week in spite of the so-so auction results. But this afternoon’s auction of $32 Billion of 7-Year Notes carries more inflation risk to investors due to the longer maturity date. So I will be watching to see how the market reacts to the auction.
For now, I recommend floating to see if prices can build on the positive technical momentum, and potentially climb back up towards the next ceiling of resistance."

Leonard Winslow, New American Mortgage, Charlottesville
434-760-2580 (cell)
leonard.winslow@newamerican .com
www.newamerican.com/leonard.winslow
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