Mortgage bond prices opened higher Tuesday morning erasing the losses seen Monday afternoon and more. Weak stocks and economic data are supporting rates.
In news released this morning, personal income, outlays and the core PCE were unchanged last month. Estimates were for a slight increase in all three data points. The lower read on the inflation data will add fuel to the DEFLATION debate that is starting to rage among bond traders. The WJS cited Bill Gross as hedging for deflation. Bill is a very smart guy and should be listened to.
Carlos Figueira - Keypoint Mortgage 