Wednesday, October 21, 2009
Saturday, October 10, 2009
Spike In 10 Yr Note Rate
So what caused the huge spike in the 10 Yr Note rate that began as soon as the Treasury Auction was completed on Thursday, a 24 bps spike in rate in 7 1/2 market hours (15 half hour bars)
Speculation on my part is that the Primary Dealers are getting stuck with huge inventory from the auctions. It will be interesting to see any stories coming out. Imo, the jig is up. Rates are moving higher. Fasten your seat-belts. If you are looking to refinance, this is no time to get cutesy and wait for bottom-tick. The Spreads between the 10 Yr and Fannie Maes are historically thin, I'll be updating that chart tomorrow. Bottom-tick for 30 yr fixed has left the station, lock immeditately. You'll thank me in March.
Speculation on my part is that the Primary Dealers are getting stuck with huge inventory from the auctions. It will be interesting to see any stories coming out. Imo, the jig is up. Rates are moving higher. Fasten your seat-belts. If you are looking to refinance, this is no time to get cutesy and wait for bottom-tick. The Spreads between the 10 Yr and Fannie Maes are historically thin, I'll be updating that chart tomorrow. Bottom-tick for 30 yr fixed has left the station, lock immeditately. You'll thank me in March.
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