Market Comment

After rallying higher yesterday, Stocks are taking a breather this morning, which is benefitting Bonds and helping Mortgage Bonds break free from the downward trend they’ve been trading within since late November.
In other the news, the Pending Home Sales report showed a decline of 16.0% for November.
For now, I recommend floating to see Bonds will continue to add to their gains. I will let you know if a change of course is needed.

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

Market Comment

After rallying higher yesterday, Stocks are taking a breather this morning, which is benefitting Bonds and helping Mortgage Bonds break free from the downward trend they’ve been trading within since late November.
In other the news, the Pending Home Sales report showed a decline of 16.0% for November.
For now, I recommend floating to see Bonds will continue to add to their gains. I will let you know if a change of course is needed.

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

Market Comment

Mortgage Bonds have started the New Year to the upside; however, prices still need to break out of the worsening trend they have been in since November 25th.
In other news, last week the Fed purchased just $9.3B in Mortgage Backed Securities. With the Fed buying fewer Mortgage Bonds and wrapping the program up entirely at the end of March, any improvement in rates may be modest at best. Also, Atlanta Fed President Dennis Lockhart will be speaking later today and this could impact the markets.
I recommend floating for now to see if Bonds can stabilize but I will let you know if we need to change course."

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.

Market Comment

Mortgage Bonds have started the New Year to the upside; however, prices still need to break out of the worsening trend they have been in since November 25th.
In other news, last week the Fed purchased just $9.3B in Mortgage Backed Securities. With the Fed buying fewer Mortgage Bonds and wrapping the program up entirely at the end of March, any improvement in rates may be modest at best. Also, Atlanta Fed President Dennis Lockhart will be speaking later today and this could impact the markets.
I recommend floating for now to see if Bonds can stabilize but I will let you know if we need to change course."

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.

Market Comment

Stocks are rallying higher this morning. Although this would normally add selling pressure to Bonds, they are starting the day near unchanged levels.
Yesterday, the Fed issued its Policy Statement without any big changes or surprises. In today's news, Initial Jobless Claims was reported lower than expected and at the lowest reading since the first week of 2009. Continuing Claims also dropped, but this is likely due to benefits expiring rather than people finding jobs.
Despite today's better-than-expected numbers, tomorrow's official Jobs Report will probably indicate continued weakness in the labor market, with the unemployment rate likely nearing 10%. Bonds are currently holding their own; therefore, I recommend floating as we await tomorrow's report.

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.

Market Comment

Stocks are rallying higher this morning. Although this would normally add selling pressure to Bonds, they are starting the day near unchanged levels.
Yesterday, the Fed issued its Policy Statement without any big changes or surprises. In today's news, Initial Jobless Claims was reported lower than expected and at the lowest reading since the first week of 2009. Continuing Claims also dropped, but this is likely due to benefits expiring rather than people finding jobs.
Despite today's better-than-expected numbers, tomorrow's official Jobs Report will probably indicate continued weakness in the labor market, with the unemployment rate likely nearing 10%. Bonds are currently holding their own; therefore, I recommend floating as we await tomorrow's report.

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.

Daily Market Comment

Since the beginning of the month, Mortgage Bonds have been battling an overhead ceiling of resistance. Prices have been unable to make a convincing move above this ceiling, thanks in part to recent Treasury auctions and a resilient Stock market.
Earnings season kicked off yesterday, and as always, aluminum giant Alcoa was the very first company to report. Alcoa beat expectations and returned to profitability for the first time in a year, which is giving a lift to Stocks so far this morning but at the expense of jobs.
Initial Jobless Claims Report were released today coming in lower than expectations and were the fewest claims since the 1st week in January.
The Treasury auction results will hit at 1:00pm ET, as the government auctions off $12B in 30-year Bonds and it could have an impact on the Bond market. For this morning, I will recommend to Carefully Float, but I will be on guard for a reversal as Bond prices battle tough overhead resistance. If anything changes, I will let you know

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.

Daily Market Comment

Since the beginning of the month, Mortgage Bonds have been battling an overhead ceiling of resistance. Prices have been unable to make a convincing move above this ceiling, thanks in part to recent Treasury auctions and a resilient Stock market.
Earnings season kicked off yesterday, and as always, aluminum giant Alcoa was the very first company to report. Alcoa beat expectations and returned to profitability for the first time in a year, which is giving a lift to Stocks so far this morning but at the expense of jobs.
Initial Jobless Claims Report were released today coming in lower than expectations and were the fewest claims since the 1st week in January.
The Treasury auction results will hit at 1:00pm ET, as the government auctions off $12B in 30-year Bonds and it could have an impact on the Bond market. For this morning, I will recommend to Carefully Float, but I will be on guard for a reversal as Bond prices battle tough overhead resistance. If anything changes, I will let you know

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.

Daily Market Comment

Mortgage Bonds are higher so far this morning, remaining above support at the 25-Day Moving Average.
In the news, signs of the bottoming process continue as Housing Starts for August came in at the highest level since last November. Building Permits came in a bit lower than expected, but overall the report suggests that the worst in the housing market may have passed. Also today, Initial Jobless Claims were reported lower than expected.
I recommend floating for now, as I monitor Treasury's announcement later today regarding next week's auctions. Recent auctions have been well received and have therefore helped to support Bond prices. I will keep you posted of any major developments.

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

Daily Market Comment

Mortgage Bonds are higher so far this morning, remaining above support at the 25-Day Moving Average.
In the news, signs of the bottoming process continue as Housing Starts for August came in at the highest level since last November. Building Permits came in a bit lower than expected, but overall the report suggests that the worst in the housing market may have passed. Also today, Initial Jobless Claims were reported lower than expected.
I recommend floating for now, as I monitor Treasury's announcement later today regarding next week's auctions. Recent auctions have been well received and have therefore helped to support Bond prices. I will keep you posted of any major developments.

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

Mortgage Market Comment

Mortgage Bonds are trading lower this morning after the Producer Price Index came in more than double expectations, prompting fears of wholesale inflation. We'll get a better read on inflation tomorrow, when the Consumer Price Index is released.
In other news, Retail Sales for last month were reported at the largest monthly increase in three years, due largely to the Cash for Clunkers program. Additionally, the New York State Manufacturing Index climbed to its highest level since late 2007. However, this may indicate a temporary boost for manufacturing, rather than a true uptick in business activity.
Overall, Bonds have rallied back strong after bouncing off of support at the 100-Day Moving Average. I recommend floating for now as I watch to see if support holds.

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.

Mortgage Market Comment

Mortgage Bonds are trading lower this morning after the Producer Price Index came in more than double expectations, prompting fears of wholesale inflation. We'll get a better read on inflation tomorrow, when the Consumer Price Index is released.
In other news, Retail Sales for last month were reported at the largest monthly increase in three years, due largely to the Cash for Clunkers program. Additionally, the New York State Manufacturing Index climbed to its highest level since late 2007. However, this may indicate a temporary boost for manufacturing, rather than a true uptick in business activity.
Overall, Bonds have rallied back strong after bouncing off of support at the 100-Day Moving Average. I recommend floating for now as I watch to see if support holds.

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.

Daily Market Comment

Mortgage Bonds are trading lower to start the day, but improved from their worst levels seen earlier.
In other news, President Obama imposed a special tariff on Chinese tires late Friday to help address the job losses among US tire workers. As a result, there is some concern that China could unload some of their US security holdings, largely Mortgage Bonds, which would cause home loan rates to increase.
Bonds continue to trade near a key support level. I recommend floating for now, but any move away from this level could lead to added volatility. I will alert you if we need to change course.

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.

Daily Market Comment

Mortgage Bonds are trading lower to start the day, but improved from their worst levels seen earlier.
In other news, President Obama imposed a special tariff on Chinese tires late Friday to help address the job losses among US tire workers. As a result, there is some concern that China could unload some of their US security holdings, largely Mortgage Bonds, which would cause home loan rates to increase.
Bonds continue to trade near a key support level. I recommend floating for now, but any move away from this level could lead to added volatility. I will alert you if we need to change course.

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.

Mortgage Bond Trend

Mortgage Bonds are trading slightly lower this morning, despite some typically Bond-friendly news regarding wholesale inflation and weaker-than-expected housing numbers.
In terms of wholesale inflation, the Producer Price Index (or PPI) fell more than expected. However, the Core PPI--which strips out volatile food and energy prices--was inline with expectations. Also this morning, Housing Starts and Building Permits rose in July, but both came in slightly below expectations. Still, housing appears to be gradually stabilizing.Currently, prices are trying to remain above the 200-Day Moving Average.

Leonard Winslow, Branch Manager, 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

Mortgage Bond Trend

Mortgage Bonds are trading slightly lower this morning, despite some typically Bond-friendly news regarding wholesale inflation and weaker-than-expected housing numbers.
In terms of wholesale inflation, the Producer Price Index (or PPI) fell more than expected. However, the Core PPI--which strips out volatile food and energy prices--was inline with expectations. Also this morning, Housing Starts and Building Permits rose in July, but both came in slightly below expectations. Still, housing appears to be gradually stabilizing.Currently, prices are trying to remain above the 200-Day Moving Average.

Leonard Winslow, Branch Manager, 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

Daily market Comment

Mortgage Bonds are starting the week on the upside, as Stocks slide lower due to fears of a slower than anticipated world economic recovery.
Amidst all the global negativity was some better than expected news this morning on US manufacturing, as the Empire State Index came in far better than expectations. There are no Treasury auctions this week, but this Thursday will bring the announcement for the upcoming round of Bond supply that will hit the market next week. Bonds have not reacted well to previous announcements of additional supply, so this will be something to watch for later this week.

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

Daily market Comment

Mortgage Bonds are starting the week on the upside, as Stocks slide lower due to fears of a slower than anticipated world economic recovery.
Amidst all the global negativity was some better than expected news this morning on US manufacturing, as the Empire State Index came in far better than expectations. There are no Treasury auctions this week, but this Thursday will bring the announcement for the upcoming round of Bond supply that will hit the market next week. Bonds have not reacted well to previous announcements of additional supply, so this will be something to watch for later this week.

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

Mortgage Bond Comment

Mortgage Bonds are higher this morning, as they follow through on yesterday's rally.
Helping give Bonds a lift was good news on inflation from the Labor Department. Worker Productivity came in better than expected and rose at its fastest pace in 6 years, as companies cut costs and try to maximize output from their current staff. This efficiency helps curb inflation, which is good for long-term Bonds like Mortgage Bonds.Currently, Bonds are higher after breaking above resistance this morning. I recommend floating for now, as we watch to see how today's Treasury auction of 3-year Notes is received. I will keep you posted on any major developments.

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.

Mortgage Bond Comment

Mortgage Bonds are higher this morning, as they follow through on yesterday's rally.
Helping give Bonds a lift was good news on inflation from the Labor Department. Worker Productivity came in better than expected and rose at its fastest pace in 6 years, as companies cut costs and try to maximize output from their current staff. This efficiency helps curb inflation, which is good for long-term Bonds like Mortgage Bonds.Currently, Bonds are higher after breaking above resistance this morning. I recommend floating for now, as we watch to see how today's Treasury auction of 3-year Notes is received. I will keep you posted on any major developments.

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.