Thursday, August 23, 2012

Mortgage bonds opened near unchanged

Mortgage bonds opened near unchanged this morning holding rates steady after the big runup in price yesterday. The data this morning was rate friendly but the initial reaction was muted.

Weekly jobless claims @ 372k, expected @ 365k, rate friendly.

Yesterday afternoon's Fed minutes indicated:
Further easing likely soon
US economic risk toward downside due to euro zone strains
Some members advocate a large scale asset purchase program to boost recovery

Data from the euro zone indicated business activity decreased, even in Germany. It appears the euro zone is headed back into recession.

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