Wednesday, October 10, 2012

Mortgage bond prices

Mortgage bond prices are near unchanged mid-morning Wednesday failing to erase the losses seen Tuesday afternoon. MBS prices initially opened lower pressuring rates higher only to have buyers emerge taking prices higher.

Traders will spend the day watching stocks to help gauge interest rate direction as they wait for the auction and Fed Beige Book results. At the 10:00 am ET price point the Dow was down 34.

This afternoon the Treasury will auction $21B of 10-year notes with results by 1:15 pm ET. At 2:00 pm ET the Fed Beige Book will be released. The report details economic activity in all Federal Reserve districts.

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