Well, Greece is about to put itself up for auction. Well not really but they might as well considering their bond rating has been downgraded so substantially that you would probably have better luck investing in snowfall in Florida than buying Greek debt.
I am not trying to beat a dead horse. I feel terrible about what is happening in Greece and hope they are able to bring their economy back from the brink, but in all honesty this is looking more bleek everyday (watch Portugal, Italy, and Spain closely... they are following in Greece's footsteps...).
In their wake of misfortune we have, at least in the short term, benefited. Ultimately foreign investors are investing in our markets forcing treasury yields down and Mortgage Backed Securities up resulting in better interest rates and pricing for people currently looking to secure financing.
To put not too fine a point on it the MBS market has improved by 16 ticks, that's half a point better. If these gains hold, lenders will pass this on to borrowers in the coming days. Fingers should be hovering over the lock button... especially considering the treasury auctions going off this week and the FOMC meeting tomorrow.
The minutes released from the FOMC will be ciritical in determining whether or not these gains are justified and if they will hold.
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