1/13/10

Good morning. We had a nice rate improvement yesterday, starting Monday night with some banking news out of China, a widening Trade Deficit due to oil prices, a down stock market due to potential corporate weakness, and following through to a decent 3-yr Treasury auction.
It is a new day, however, and we’re looking at a 10 year note auction today and a 30 tomorrow. The auction, and the Fed’s Beige Book this afternoon, is the only real economic news expected to push the markets around a little today. Currently mortgage prices are roughly unchanged from Tuesday afternoon.