Mortgage bond prices opened slightly weaker this morning adding to the losses from yesterday afternoon following mixed data.
The
trade deficit came in at $42.92b, expected $47.5b. A falling deficit
usually strengthens the value of the dollar and can help rates. The
short term reaction was muted as the weekly jobless claims data
overshadowed the release.
Weekly jobless claims came in @361k, expected 370k, not rate friendly.
In
new from the euro zone, one of the founding fathers of the euro, Otmar
Issing, a former European Central Bank chief economist, said that some
countries may be forced to leave the currency to save the euro and
strengthen Europe. So far we have had little traction on the report but
expect continued volatility on this front.
We have a 30Y Treasury auction this afternoon that is likely to factor into trading.
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