Mortgage bond prices opened higher this morning helping knock out the
small losses from Friday afternoon. Rates are being helped by continued
turmoil in the euro zone.
Spain asks euro zone for $77b to
recapitalize banks. This rekindles the flight to quality buying of US
debt instruments such as mortgage backed securities.
We have
new home sales data later this morning before pricing is set. This week
has several important data releases including consumer confidence,
durable goods, personal income and outlays.
Moody’s Investors
Service downgraded multiple large financial institutions and banks. In
February the company said it was going to examine banks with a global
reach. Five of the six largest US banks had their ratings downgraded,
which could effect borrowing costs and reserve requirements.
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