The Chicago 77

14 July 2009 ? Today the mortgage bonds opened up down 19bps. They are currently (1:00 p.m.) down 28bps in part because of a higher than expected wholesale inflation reading. The concern is that this may?emphasis on may?lead to inflation but that would take some time to determine. However bonds typically will react negatively to [...]

10 July 2009 ? Mortgage backed bonds struggled yesterday and closed down 34 BPS. This morning bonds opened up 38bps and continue to maintain the gains?currently the mortgage backed bonds are up 50bps. The Dow is down 31 and has not had a significant rally in some time. Chevron warned investors about concerns over future [...]

6 July 2009 ? Today the mortgage backed bonds opened up 6bps. Right now we are currently down 6bps. The Dow is down 67 however, and that is not really giving any steam to a rally for the bond market. The mortgage backed bonds are at a resistance level as we have seen the rates [...]

2 July 2009 ? The mortgage bonds have opened up 22bps this morning and briefly went down to 16 bps however they have really started to heat up and are now up 31bps. Investors are moving to the safety of the bond market due to the unemployment numbers coming in at 467,000 versus expectations of [...]

1 July 2009 ? Bonds ended down yesterday by 34bps, which increased mortgage interest rates. When bonds are down, mortgage interest rates go up?when bonds are up mortgage rates go down! The Dow is up 99 and is enjoying a modest rally. This morning has been filled with news and we will start with China [...]

29 June 2009 ?Mortgage backed bonds opened up 22 bps today and currently are up 12 bps. The 30 year fixed continues to trend lower as the bond market gains momentum. China announced they will continue to buy US debt as part of their current foreign currency reserve policy. The 30 year rate is now [...]