16 October 2009 ?Bonds opened at 3bps today and have increased to 19bps this afternoon. If this holds, we may see the bonds continue to improve in the next few days. The rates have risen sharply from previous lows.
Weaker than expected sales from GE and IBM have driven the Dow down 130 points today. Bank of America also posted its first loss of the year that came in worse than analysts predicted. As I mentioned on Wednesday, it would surprise few people if the stock market pulled back a bit – something that will help the bond market.
The New York Federal Reserve has begun to cut back on its purchases of Mortgage-Backed Securities. The New York Fed bought only $16.1 billion worth of these securities this week, down from $20 billion in the previous week. Year-to-Date, the Fed has purchased $944 billion worth of these securities. The Fed has allotted a total of $1.25 trillion for the program which is set to expire March 31st, 2010.
Consumer Sentiment was reported at 69.4, lower than expectations of 73.5. Analysts believe the drop in sentiment reflected the current trend among consumers to increase personal savings and pay down household debt.
Mortgage rates are still solid right now, 4.75% (4.83 apr) on the 30 year, 4.375% (4.423 apr) on the 15 year.Email This Post To a Friend.