Tuesday, July 24, 2012

How long can they weather the storm?

Mortgage bond prices opened slightly weaker as we see things back up from the recent runup in prices.

There was no data this morning. We have a 2Y note auction this afternoon.

News out of the euro zone was mixed this morning. Moody's downgraded Germany's credit rating outlook and Chancellor Merkel was quick to counter those reports with her own statements which indicated, “Germany will, through solid economic and financial policy, defend its ‘safe haven’ status and continue to responsibly maintain its anchor role in the euro zone." The trouble isn't that Germany's economy is solid compared to the rest of the euro zone, rather, Germany is being slowly but surely bound to the risk from all the other insolvent countries(Spain, Italy, Greece, etc....)

No comments:

Post a Comment