Mortgage Bonds have already traded in a wild range this morning. The good news is that prices have managed to remain above an important level of support, despite the volatile trading.
Adding to the volatility is news that China is concerned the US may be spending too aggressively on the recession, which may lead to inflation down the road that would diminish the value of Bonds and China’s investments in the US. Also in the news, the Stock Market is reacting positively to Congress’s hearings on mark-to-market, as well as Citigroup’s announcement that it will not need more TARP money from the government.
Currently, Mortgage Bonds are trading in a very tight range between resistance and support.
“Your Partner In Success!”
Tony Frerking
Sr. Mortgage Consultant
PMZ Home Loans
1600 N. Carpenter Rd. Ste. C
Modesto, CA 95351
Direct: (209) 404-2200
Fax: (209) 254-7142
