Posted by: cfigueira | April 29, 2010

Mortgage bond prices

Mortgage bond prices remain near unchanged Thursday morning failing to erase the small losses seen Wednesday afternoon. Trade is quiet. In news released this morning, weekly jobless claims stood at 448K. Continuing claims, a summation of those receiving benefits, stood at 4,645K. Analysts were expecting claims at 445K and continuing claims at 4,625K. This data was near estimates. With no more news set for release today, traders will watch stocks as they wait for the results of the Treasury auction of $32B in 7-year notes. Market participants were hoping this week’s shorter-term auctions would have been better received with all the turmoil in Europe regarding Greece, Spain and Portugal’s debt issues. In times of uncertainty, traders park money in safe liquid investments such as Treasury notes and MBS’s. Auction results are expected by 1:15 pm ET. Be careful as the auction approaches, it would not be uncommon to see rates come under pressure as traders prepare for the additional supply.

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