Market commentary

Today’s market moves tell us how fickle markets can be. For several weeks stocks seemed to be ignoring the looming nuclear crisis in Japan and the toll high oil and commodity prices would eventually take on the economy. Today, however, both are of concern and we see investors selling stocks and buying Treasury bonds. While one day does not portend a shift in sentiment, it is a wake up call. Keep in mind the U.S. Treasury is auctioning $32 billion of 3 year notes today, so we will see how the bond rally fares when the results of that auction are announced. The yield on the 10 year note has fallen from 3.59% to 3.50% and mortgage bond prices have improved to the levels they began Monday morning, so you should see pricing flat from Monday.