Monday, August 20, 2012

Mortgage bonds opened slightly weaker this morning

Mortgage bonds opened slightly weaker this morning eating away some of the small gains from Friday afternoon.

There was no data this morning. We initially looked to open considerably weaker as reports from the euro zone indicated the European Central Bank would buy member nation debt to help keep borrowing costs in check. However, the ECB downplayed those initial reports and the seesaw volatility resumed.

We have a light data week but the Fed minutes Tuesday often cause some volatility so caution is key.

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