Wednesday, August 8, 2012

The market is Unchanged since Tuesday 's ratesheet

Mortgage bond prices opened positive helping reverse the recent negative trend and helping rates improve a little.

Preliminary Q2 productivity up 1.6%, expected up 1.3%. The initial reaction was muted as U.S. debts looked to open positive even before the release.

News out of the euro zone continue to show trouble. The S&P downgraded the Greek credit rating, cutting the outlook from stable to negative. Not a huge shocker but counters other news articles claiming things are stabilizing for the euro zone. Spain continues to show weakness with industrial output continuing to fall. The only bright spot remains Germany which saw solid demand for their 10 year debt.

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