Tuesday, January 12, 2010

tuesday, January 12, 2010

Uncle Sam is in the credit markets today looking to borrow $40 billion in the form of 3-year notes. Demand for this debt offering will likely be solid - since the big run-up in yields last month left prices at very attractive levels. Bigger test of investors' appetite for more government debt will come tomorrow when Uncle Sam looks to off-load a $21 billion stack of 10-year notes followed by a $13 billion wad of 30-year bonds on Thursday.


The economic calendar has nothing to offer today. Under these conditions trading action in the stock markets will likely exert more than normal influence on the trend trajectory of mortgage interest rates. Look for falling stock prices to be supportive of steady to perhaps fractionally lower mortgage interest rates while rising stock prices will have an inclination to push mortgage interest rates higher.

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