Bonds WAY down...and the FNMA 4.5% is currently down about 57 basis points. The bond market is closed on Monday...and the stock market is open. SO: if there is some activity that will deteriorate the value of securities...investors will not be able to "divest" of their bonds until TUESDAY. They are selling out to preserve their profits after the huge run-up we have seen over the last few weeks. Bond market is closing for Columbus day. FEDS bought 50 BILLION dollars worth of bonds last week but then sold back about 29 billion for a NET purchase of around 21 million. Most of the purchasing is focused in the 5% mortgage bond...so this pushes rates up to the 5.5% range. Today's "balance of trade" report shows that we consume about 30.7 BILLION dollars worth of goods and services MORE than we produce. Remember this number has been negative since the late 70's and never has too much effect on the markets. Have great weekend!
Chad
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