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For what it's worth, I don't know a single person in my work circles who believes we are in a lowering interest rates environment. Some are QE related, some are monetizing of debt related, all lead the same road. I have talked enough about the eventual inevitability of the federal governments inability to fund itself for everyone to know where I am going with this.
Quote from: muldoon on May 26, 2009, 01:37:07 PMFor what it's worth, I don't know a single person in my work circles who believes we are in a lowering interest rates environment. Some are QE related, some are monetizing of debt related, all lead the same road. I have talked enough about the eventual inevitability of the federal governments inability to fund itself for everyone to know where I am going with this. bond market told Ben a big FU today. money is going into the short end of the curve. Note the mortgage rate reaction.. http://www.erate.com/six_month_libor_index.6-months-libor.htm30 Year Fixed Rate Mortgage Previous 26-May-09 - 5.08% Current 27-May-09 - 6.52% ONE DAY change 28.2% = the end of any housing market recovery. from mbsonline, this is a waterfall move. 30 year FNMA'a 4.5% are trading 99-28 (thats 28/32's) 6.52%? omg. --this could be the start of something really big. the trend is unload MBS and long term bonds. Todays auction was the 5 year, it went well - everyone is dumping from the 10 and 30s to go into short term. It's a vote of no confidence.
Too early to see what's going to happen yet IMHO.
The Obama Adm. Has a lot more smoke to blow at the mirrors.
I'm looking for the roller coaster to keep going for another month before the ship takes on too much water to stay afloat.