Market Comment

Mortgage Bonds are higher this morning, as concerns about Japan's credit rating are causing global investors to move money from Japanese Bonds into the safe haven of US debt, including Mortgage Backed Securities.
In other news, Consumer Confidence came in slightly higher than expectations. Stocks improved slightly upon the news, and Bonds gave back some of their earlier gains. Also today, the Treasury will sell $44 Billion worth of 2-Year Notes, which could impact trading this afternoon.
For now, I recommend floating, as Mortgage Bonds trade between the 50- and 200-Day Moving Averages. But be prepared to lock if the market turns volatile based on the auction results or other market news. I will keep you posted.

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