A WORD FROM THE BOND PITS: Investors remained tilted towards equities today as they held most of yesterdays gains. Sellers were widespread, particularly in the 3.5s, 4s and 4.5s. Volumes were elevated during the session. CLOSING TECHNICAL SIGNAL: The gap lower after a bad down day is not a good sign. Furthermore, were beneath 3 moving averages and have broken below a rising support line. Add this all up and your clients should consider locking short term transactions, avoiding a further move lower to the 50-day Moving Average for the 4%. MARKET WRAP: Mortgage Bonds declined for the second straight day, despite Stocks closing near unchanged. There were no economic reports released today. Sellers took hold of the Mortgage Bond market early, which sent Bonds drifting lower throughout the session. The 4% closed at 104.06, down 31bp. The Dow lost 30.83 points to 15,963.94, the S&P closed near unchanged at 1,819.26, while the Nasdaq rose by 10.24 points to end at 4,201.28. Oil was last seen at $100.30/barrel up 37 cents. Tomorrows data includes Initial Claims and Retail Sales. The Treasury will sell $16B 30-yr Bonds. Fed Chair Yellens second testimony in front of the Senate Banking Committee has been postponed due to inclement weather in the D.C. area.
Posted on: Wed, 12 Feb 2014 23:34:39 +0000
Trending Topics
Recently Viewed Topics
© 2015