Todays Mortgage Maket
MMG Update - Thursday, February 14, 2008 10:09am ET
Current Trend Direction: Lower
Risks favor: Floating
Current Price of FNMA 5.5% Bond: $100.22, -19bp
Love is in the air…It’s Valentine’s Day. But Mortgage Bonds have been feeling pretty neglected lately, as prices have dropped by 175bp since January 22nd. And this morning’s trading has been a very wild ride, after yesterday’s 47 point drop. Prices actually opened higher this morning, then fell a whopping 60bp, but have since recovered most of their losses. The volatility continues with no end in sight.
Adding to the mix is testimony from Fed Chairman Ben Bernanke and Treasury Secretary Henry Paulson, which is just getting underway before the Senate Banking Committee. Will Big Ben and Hammerin’ Hank send a message of love or will they raise concerns about inflation? Remember that last week, comments about inflation by Richard “Loose Lips” Fisher sent prices much lower. We will be watching it closely for you.
In this morning