Friday, August 21, 2009

FLOAT OR LOCK? Daily Phoenix Interest Rate Update and Recommendation - Aug 24th, 2009

Current Pricing of FNMA 30 Year 4.5% Bond: $100.00
+31bps (Prior Close – $99.69)

Market Update: The MBS pricing started off lower this morning but has since improved as talks of the $8,000 tax credit will likely be extended past the November 30th deadline and may also include buyers who are not first-time homebuyers. The US equity markets are moving higher on the reports that the global recession is coming to an end.

Economic News: No economic reports are due to be released today. There is $109B in supply hitting the Treasury markets this week which will likely add pressure to the interest rate markets.

Recommendation: FLOAT

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