Posted by: cfigueira | May 4, 2010

Mortgage bonds prices

Mortgage bonds prices opened slightly positive this morning.

We have factory orders data at 10am ET.

Stock futures point toward a lower open later this morning. Of course, that is no guarantee stock weakness will continue. Stocks continue to zig zag a bit.

Oil prices are slightly higher. Analysts say the Gulf oil spill won’t cause prices to rise immediately in the short term but could have a long term effect. There is great concern that tanker traffic in that area will be impeded which will cause price increases across a wide scope of goods. Rising prices of goods in a wobbly economy is not a good recipe for recovery.

Yesterday’s $146 billion Greek bailout still factors into trading. This was the largest ever bailout and the first for the members of the 16 nation Eurogroup. This aid was infused to help prevent a default. As we saw stabilization, or perceived stabilization, we saw a reverse of the earlier flight to quality buying tied to the Greek instability. Fortunately the negative trend didn’t snowball.

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