Bleeding To Death Slowly

Home loan interest rates continue to trickle back up as the mortgage backed securities market continues to sell off. It's been a troubling week and last few days, all of which have ended down forcing yields and rates higher. It all began last Friday when we lost 8 ticks, then another 8 ticks on Monday, then another 9 on Tuesday, now we're down 10 ticks... add it all up, and we've lost over a point in secondary.

This does not bode well for rates (if you haven't picked that up yet) and the sell off is starting to look like a trend as we bust through support levels without blinking and fall off the cliff's edge like lemmings (which apparently is not true). Lemmings... that's what investors feel like right now as they run from the long term markets, day after day after day.

Ultimately I do not expect this bleeding to stop until the Fed Chairman comes out of his cave rolls his eyes to the left signalling, much like the groundhog, this recession will continue, and then disappears again to enjoy the finer things in life. Okay, okay, he's not quite that cryptic, but my point has been made, the Fed holds all the cards and is in control of the show. We're essentially waiting on good old Ben to say what he's got to say on Friday, and hope it jives with our market. If it does, we'll see the money come pouring back in, if it doesn't we'll see the sell off continue in far faster form.

Terrible to think one man has that much control over literally trillions of dollars and how they are invested... honesty, if they would stop tinkering and just let the market sort itself out... we'd probably be better off. But alas, Ben is due to the microphone, and the press won't let him miss that date, so the cycle continues, which probably means more stimulus (that's all these clowns know how to do), which means more money which means higher rates due to inflation.

Friday... is do or die day... Let's hope Ben eats his Wheaties and has a Yoda moment.