Strong showing for the 38 billion dollar T-note auction today...kept the FNMA 4.5% in the running. The note was up 6 bps and rates are squarely in the 5% range for the 30 year fixed products.


Investors are coming out from under rocks and taking their money out of US dollars to invest in other things that carry a higher return...and higher risk. This is good news for global markets and bad news for the dollar.

The dollar was also a little more beat up today with the announcement by the United Nations that a "new global reserve currency" should be named. Remember the the dollar has been the benchmark or the "standard" for so long because of its relative stability compared with the currency of the rest of the world. The US has become the world's bank...and that is our biggest product. Unfortunately with the latest slew of monetary policy, many major foreign investors are worried about the control over their portfolio that is afforded by the billions they hold in US currency...and the effect of our policies on their holdings.

Watch for MAJOR, MAJOR turmoil if a new global currency is announced...unless we go to that currency as a nation and ditch the US dollar altogether. Sounds radical? Maybe not as much as it would have 10 years ago.

The sharp decline in the dollar drove the value of gold up over $1000/ounce today and also pushed up the value of crude by $3.08 to just over $71/barrel.


Have a great eve!

Chad