Weekly Mortgage Market Overview: 5/21/12

By May 21, 2012Uncategorized

This week Treasury will auction $99B of notes beginning Tuesday through Thursday. The 10 yr note yield fell to 1.70% last week, a key resistance level and matching the lowest yield on the 10 yr set last Sept. April existing and new home sales along with April durable goods orders are the key reports this week. Stocks should rebound from their worst week since September and U.S. futures rise as China signaled it would support the economy and German and French officials prepared to meet before a summit. Commodities snapped a three-day drop while Treasuries and the yen declined. The Bank of Japan, which starts a two-day meeting tomorrow, expanded its asset-purchase program in February and April. Last week, two bond-buying operations failed to attract the central bank’s target for sell offers. The European Union summit starts Wednesday. Concern Greece will exit the euro erased about $4 trillion from global stock markets this month. Europe’s debt problems continue to dominate US bond market as money from around the world is piling in to safety in treasuries.


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