Technically speaking.
Posted by Don on May 11, 2010
This post is to describe just what is meant by the term technical that I frequently use here. As you may know, the interest rates that mortgages are set by are set on the open market — investors around the world either buying US Treasury notes/bonds (which demand will raise the price, and thereby lower the interest rate yield) or selling them (which will raise interest rates.) But it all...
Read MoreStable, to drifting downward, on EU rethink.
Posted by Don on May 11, 2010
After yesterday’s increase, the markets are relatively stable, with short term trend to decrease a bit today. Investors are beginning to digest the news of the EU assistance program, and are yet a bit skeptical as to whether this is going to contain the problem. So, some money is flowing back into US markets today. Domestically, inventories of US wholesalers rose for the third month, in...
Read MoreOpened higher; stable, on Euro agreement.
Posted by Don on May 10, 2010
Overnight the 16 European nations agreed to an aid package of €750 billion ($962 billion) for their “most indebted” countries. And just as quickly, interest rates for Greece, Italy, and Spain declined significantly: Greece, trading recently in the 12’s, dropped over 4.5 points to 7.75% Italy and Spain, likewise dropped to the upper 3’s. By the morning’s openings, US...
Read MoreLikely lower, with volatility, on Euro (global) news.
Posted by Don on May 7, 2010
As you probably saw from yesterday’s Dow volatility, the markets are real unsettled, with respect to the global economy. Significantly predominating the news is the Euro situation, and the growing concern and belief that the economic “package” offered to Greece (implied to others, if needed) isn’t going to be enough. The scrutiny on Greece shifted first to other nations,...
Read MoreRates down due to flight to quality, on Euro news.
Posted by Don on May 6, 2010
The concern for the financial soundness of the Eurozone continues to drive interest rates down. Investors simply question whether or not the EU provision (primarily, for Greece) is going to be enough to keep the financial challenges from spreading to other nations, notably Spain, Portugal, and Italy. Last week, the S&P rating system lowered Greece three levels to the junk grade of BB+, and...
Read MoreDown on Euro news.
Posted by Don on May 5, 2010
Rates are down again today, most entirely on Eurozone news. In short, the markets question (read, don’t believe) that Greece’s situation can be contained by the $145 billion guarantee. The length of time it took for (primarily) Germany to consummate this, caused scrutiny into the other surrounding nations, and drove their rates of interest higher. Although Spanish Prime Minister Jose...
Read MoreRates lower on continued Euro concern.
Posted by Don on May 4, 2010
Rates are sharply lower this morning, generally on continued concern that Eurozone financial challenges might spread. Although the Greece agreement has stemmed the imminent threat, the reality of the delay-in-response did cause an affect to Portugal, Spain and other Euro nations; and left the market unsettled. As such, US Treasuries benefited from a significant flight-to-security. Domestically,...
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