Mortgage bonds remain higher extending the gains from yesterday afternoon following bond friendly data. Q2 ECI rose 0.5% as expected. Q2 Advance GDP rose 2.4%, weaker than the expected 2.5% increase. This was a much lower figure than Q1’s 3.7% increase. This data shows the economy remains wobbly with little price pressures, overall positive things for bonds. Consumer sentiment came in at 67.8 versus the expected 67 mark. The initial reaction helped stocks recover some of the earlier losses and pulled us off the highs on the MBS side a bit.
Carlos Figueira - Keypoint Mortgage 