September 25th, 2014 2:52 PM by Dale DiGennaro
Mortgage Backed Securities are up +9/32 (FNMA 30-yr 3.5 at 102.08), around 2/32 above morning levels, and near the high for the day.
Investors shifted assets from stocks to bonds today, partly due to concerns about the pace of global economic growth outside the US. The President of the European Central Bank (ECB) suggested that additional stimulus likely would be needed to combat weaker than expected growth in the region. In addition, it was reported that Russia is considering a bill which would allow the government to seize the assets of foreigners. This aggressive move raised concerns that the conflict in Ukraine may escalate. Today's US economic data had little impact. The results for the 7-yr Treasury auction were weaker than average. The Dow is down 260 points. Tomorrow, additional revisions to second quarter GDP and Consumer Confidence will be released.
Also...Freddie Mac reported that average mortgage rates fell in the week through September 25, with 30-yrs hitting 4.20%, from 4.23% the prior week.
More news to follow...