Wow! Great day for the U.S. treasury market has the Senate hammers Goldman Sachs executives. The Senate panel actually had the audacity to say Goldman inflated the housing bubble. Clearly these senators have forgotten the Federal Reserve sets interest rate policy and Congress themselves forced Fannie Mae and Freddie Mac to make loans to borrowers who were, well, let’s just say they were subprime borrowers.
In addition to this, Standard and Poor’s downgraded Greek debt to junk status, and lowered the rating on debt issued by Portugal. These downgrades have caused a decline across the board in European bonds.
The rally in U.S. bonds will likely help with today’s $44 billion of 2 year treasury notes. These results will be announced at approximately 10:00 AM, PT.
For now, take advantage of the rally in mortgages, which are well over .50% in price better from Monday’s bond market close.
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