5/11/10

Most rate prices are modestly improved today as mortgage bonds attempt to hold onto yesterday’s closing levels in choppy trading. Bonds were up earlier this morning but have erased those gains as the stocks have paired earlier losses. Today brings the first of 3 auctions this week with 3yr notes. Scheduled econ news is limited to positive business confidence surveys and inventory figures—not any real market movers here. Fed speak is dominant with several figures making the rounds. Yesterday’s euro euphoria seems to have dimmed a bit today as the reality of “fixing” the debt crisis is causing some to sober up and ask tough questions. Simply throwing money isn’t enough…structural reform will need to happen and it only takes a replay of the Greek rioting tapes to get the picture. Today could be bumpy.