28 July 2009 ? What a day for bonds, this morning the bonds were up 3bps, and by Noon we were flying high with Day Change up 50 bps. However as I mentioned in my daily update last week, there were treasury auctions that were taking place this week of almost 210 billion which is an extreme supply. The 2 year Treasury Note auction of 42 billion was not well received, while yesterdays 20 year went over well. With the 2 year auction not going well this has weighed heavily on the bonds and we are now up 12 bps which is a drop of 38bps. We will see a lot of volatility today and over the next few days with more auctions to follow. The 30 year rate is holding steady at 5.125% to 5.25% with 0 points, when paying 1 point which is 1 percent the consumer would be looking at a rate of 4.875% to 5% on the 30 year fixed.Email This Post To a Friend.
Bonds Up, Mortgage Rates Hold Steady
July 28, 2009
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