Market commentary

U.S. consumer sentiment, as measured by the Reuters/University of Michigan survey, inched higher from 55.7, the lowest level since 2008, to 57.8. The gauge of consumer expectations, however, floundered, coming in at 47.0, the lowest level since 1980. Clearly consumers are retrenching as poor economic data, concern about jobs, the lack of leadership coming from Washington D.C., and the continuing headlines of a pending financial crisis in Europe take their toll.

U.S. Treasuries sold off yesterday on stronger statements of support from Germany and France along with the announcement of coordinated central bank efforts to provide dollar liquidity to the euro zone banks. The European Central Bank announced the U.S. Federal Reserve, Bank of England, Bank of Japan, and Swiss National Bank will work with the ECB to provide three-month term dollar borrowing of unlimited quantity. In other words, another bailout of unlimited scope.

Mortgage prices are unchanged from the market close on Thursday.