Mortgage bond prices remain higher Wednesday morning adding to the gains seen Tuesday afternoon. Rates are finding support from weak stocks. At pricing the DOW Jones index was lower by 200-points.
In news released this morning, the trade deficit stood at 49.9B. Analysts had estimated the deficit would stand at 42.2B. This is the largest deficit since October 2008.
Traders will spend the day watching stocks as they await the outcome of the 24B 10-year Treasury auction. If stocks recover, rates may come under some pressure.
Carlos Figueira - Keypoint Mortgage 