Market Analysis

While a reduction in weekly jobless claims that was much larger than expected (fewer jobless claims filed), is negatively impacting US Treasury bills today (better than expected economic news traditionally supports stronger stock prices and lower bond prices which produces higher yields/rates), Fannie Mae and Freddie Mac MBS have opened well in positive territory (higher prices means lower yields/rates, or lower closinig costs for the same rate).  It appears market participants are realizing that the negativity yesterday as a result of the Wall Street Journal article on foreign banks shedding their holdings of the MBS was probably overblown (at least in the short term). 

Posted by Matthew Breston on December 31st, 2008 8:50 AMPost a Comment (0)

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