Mortgage Bonds opened higher in early trading this morning.
Yesterday, Stocks reacted negatively to talk that the government may convert its preferred bank shares to common stock--thereby making the US government and taxpayers the largest shareholders in the country's 19 largest banks. Also adding selling pressure to Stocks are some weak earnings by The Bank of New York, Caterpillar, Dupont, Coca Cola, Merck and United Technologies.
Currently, Mortgage Bonds are trying to claw their way above the 25-day Moving Average. I recommend floating for now, but be prepared to lock if sentiment changes and prices reverse lower. If prices do change course, I will certainly let you know. In the meantime, I hope that you enjoy the rest of your day. If there is ever anything that I can do for you, please let me know.
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