Market Analysis

This week there has been a dramatic  movement of bonds to to their lowest price levels in recent years (highest rates).  Below are Larry Baer's 10 day and 24 month charts of the Fannie Mae 5.5% 30 year mortgage-backed security (mbs) that provie a graphical display.    This morning's Consumer Price Index (CPI) came in a bit higher than expected at a .6% increase for the month compared to .5%, although the core rate (stripping out food and energy) came in at a .2% increase, which was expected.