The party continues. Mortgage bond prices opened higher Tuesday morning adding to the gains seen Monday afternoon. Rates are finding support from headline news coming from Europe.
Prices shot higher Tuesday as the focus returned to the European debt crisis and the banking sector after Fitch downgraded BNP Paribas last night. Global traders are beginning to wonder if a major crisis is looming in Europe’s banking sector. This fear has caused a return to “flight-to-safety” buying, which supports US debt instruments.
Carlos Figueira - Keypoint Mortgage 