Mortgage bonds prices opened positive this morning erasing most of the losses from yesterday afternoon. Stock futures point to a negative open later this morning as the global economic concerns continue.
Yesterday we had concerns about the Spanish Government taking over a regional bank. This morning the focus is on instability on the Korean peninsula with military conflict a huge concern. We often see flight to quality buying of US debt instruments when other areas of the globe look unstable.
The US Treasury will auction a total of $113 billion of notes this week. That is a tremendous amount of supply.
We have consumer confidence at 10am et and a 2 year auction this afternoon.
Carlos Figueira - Keypoint Mortgage 