US bond prices ended in positive territory yesterday, which was good news considering the tepid demand at the 30 year bond auction. US economic data the past few weeks has generally showed improvement and growth in the economy. In a “normal” environment the result of this would be rising interest rates and an improving stock market, however, the tenuous economic situation in Europe has global investors nervous. The result of this has been extreme volatility in global stock and bond markets, and a general flight to quality bid for US treasury debt.
Today, the US bond market is again the beneficiary of nervous investors. Mortgage bonds have improved .25% to .375%, offering borrowers another great opportunity to lock in a great interest rate!
Have a great weekend!
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