Interest rates are level to a touch worse this morning from yesterday’s re-price for the worse as mortgage bonds fail to hold onto Monday’s closing levels, taking their cue from Treasuries which are trending negative with the 10-year yield moving back up to 3.375% but still off the highs approaching 3.50% of last week. Stock market indices are all positive, continuing the year-end Santa Claus rally, but all markets have very thin volumes as is the case this time of year with fewer participants--the stock markets appear over bought and the bond markets appear over sold—so it’s difficult to draw too much significance from current price action as traders appear more interested in eggnog and sugar plums at the moment. ABC consumer confidence is the only scheduled data point to be dumped today and will be released later this afternoon. Tomorrow and Thursday squeeze all the weeks’ news into two days so it could be a bumpy ride to close out this shortened holiday week. Stay tuned … and monitor your locks!
In the news today … For more detail, click on the Market-Headlines attachment
- Fed Extends Swap Lines With ECB, Other Central Banks (bailing out foreign banks again…what about me Mr. Fed?)
- EU to Sell as Many as Eight Bonds Issuances for the Destitute Ireland in 2011 (money that will never be repaid)
- Portugal May Be Cut by Moody’s on ‘Sluggish’ Growth (the same Moody’s that rated subprime MBS AAA?)
- Foreclosures in Most States Bypass Judges, Making Evictions Easier (as those same banks get mega bail outs and free Fed loans)
- Bond Market Rejects Fed’s QE2 as Long Term Yield RISE!!!! (that’s not gonna stop Mr. Ben B. and the Fed however)
Suggested Reading for Toda y … Ayn Rand, The Capitalist Manifesto
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