5/28/10

Most rates have improved this morning going into the long weekend, as mortgage bonds have recovered some of their losses from yesterday's rout. Today's gains could be attributed to the fact that the JV trading teams are on the floor at the NYSE while senior managers have already fled to their quaint Hampton's retreats. Inflation expectations seem to be creeping up in the near term. North Korea has emboldened its stance regarding its southern neighbor, while the gulf coast environmental disaster finally seems to be getting the cleanup attention it deserves. Global turmoil is generally good for bonds, but with thin trading, and high volatility, it's tough to gauge market direction. Let's make sure we take a few minutes this weekend to think about our service men and women who provide this nice long weekend for the rest of us. Remember the bond market closes at 11:00 am PST today due to the Memorial Day holiday.