FNMA 4.5% bond is currently trading at $101.66 or UP 44bps on the day. We are possibly looking at a day of wind in the bond market as investors pull out of stocks to preserve profit and continue to pull out of European debt and seek a safe place to park it.
Bonds are getting ripe for a sell-off though...so we will see what happens next week.
Consumer Sentiment came in right where expected at 73.3 which is much higher than it was reported for most of last year.
Black gold is Down again today...we are in the 73 dollar range/barrel vs. the 86 dollars/barrel we were at just last week.
Why? Possibly because pricing for oil per barrel is in US dollars so as more people park money in the US by purchasing our Treasury Notes or other securities, the dollar is more desirable. More DEMAND = More Value. Oil reserves are up and the forecast is for lower demand.
Those worldwide investors not seeking to dump money into the US must be purchasing gold. GOLD is at $1246 an ounce and interestingly the dollar is still gaining strength this morning.
--
Chad Schauers
Montana Mortgage Lender, Bozeman, Montana
Personal Cell: 406 799 8613
Personal Email: metchad@gmail.com
