2/17/10

Most rate prices worsened today as mortgage bonds give up yesterday’s modest gains and much of the price improvements. Mortgages are tight with Treasuries which opened weaker after better than expected housing starts and industrial production data was released this morning. Higher than expected import prices were largely due to higher oil prices as investors read this data as market neutral. Stock market indices are again in positive territory, putting pressure on bonds as the Dow is back comfortably above the 10,000 mark.