Mortgage bond prices remain near unchanged to slighly weaker since pricing yesterday.
The trade deficit came in at $42.27b. Analysts were expected a $39b deficit.
Stocks remain positive with the DOW up over 120 points.
We have a 10 year auction this afternoon. Yesterday’s 3-year auction had a 3.20 bid to cover and an indirect bid of 40.6%. The previous auction had a 3.23 bid and 48.6% indirect bid. The results didn’t move the market much.
We have a 30-year Treasury auction on Wednesday. Retail sales, production and inflation numbers will also be released during the week. With the additional supply of debt and inflation figures on deck, trade will most likely remain volatile.
Carlos Figueira - Keypoint Mortgage 