Market Analysis

Bonds are improved this morning and stocks are down on fears about Italy.  The spread between US Treasury notes and mortgage-backed securities is widening as mortgages are only slightly improved in price this morning while Treasury notes have moved more forcefully.  The 10 Yr US Treasury note is back under 2% (currently trading at 1.97%).  Remaining below 2% for the 10 Yr Note has proven unsustainable in prior moves lower. 

The economic calendar is relatively vacant today.  September Wholesale Inventories were down .1% vs an expected increase of .5%.