20 November 2009 –Bonds opened up nearly unchanged at positive 3 bps to a current day change of 0 bps. Of the $1.25 trillion allotted to Mortgage Backed Securities, $1.023 trillion have been purchased. The Fed announced that it will unload a record $44 billion in 2-Year notes, $42 billion in 5-Year notes, and $32 billion in 7-Year notes all next week. It is unsure how the market will react with such a significant bond issue as well as its effect on the bond market. Ben Bernanke?s speech earlier this week, declaring the Fed?s commitment to the dollar, has improved the dollar’s value but it has also pushed stocks and commodities lower. The Dow, Nasdaq and S&P 500 have all struggled for the latter part of the week and they seem to be finishing the week in the red. There is no upcoming economic news of significance and as always, it will be interesting to see how the markets open up Monday morning. Mortgage rates continue to hold strong for the time being with 4.625% (4.678% apr) on the 30 year and 4.25% (4.334% apr) on the 15 year.Email This Post To a Friend.
Today’s Morgage Update: Fed to Issue More than $100 Billion Next Week
November 20, 2009
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