Wednesday, August 22, 2012

Mortgage bonds added to the small gains from yesterday

Mortgage bonds added to the small gains from yesterday following reports of economic slowdown abroad.

Japanese trade data was weaker than expected. In addition, stock futures point to more weakness. The DOW closed down 68 points yesterday.

News out of the euro zone focused on a possible Greek exit. This talk has gone on for some time but the talk continues.

We have a light data week but the Fed minutes this afternoon often cause some volatility so caution is key. Exisiting home sales data will be released @ 10am et but usually doesn't move the market much.

To demonstrate how uncertain and unstable the euro zone is, here are two world reports with totally different takes, reported within hours of each other:

The brightest minds and richest investors are scrambling to end up on the right side of that debate. Fortunately, "uncertainty" is good for U.S. debt, unfortunately improvements can be erased as quickly as they come as we have seen the past few weeks. In this environment it is smart to take advantage of improvements when they come your way! 

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