Posted by Christian Penner at Sep. 26, 2011
The Market Wrap Report given to you by Christian Penner Mortgage Broker West Palm Beach:
CLOSING TECHNICAL SIGNAL: The Bears pushed MBS lower today after the Bearish Evening Pattern formed on Friday. But the losses were moderate compared with the drubbing that Treasury securities took. Look for sideways to lower for MBS.
MARKET WRAP: Talk that European officials said that the European Investment Bank (EIB) would issue special bonds and buy up distressed bonds helped to rally Stocks today and weighed on the Bond markets throughout the session. But the losses in MBS were moderate after the Federal Reserve announced it would be buying newly issued Mortgage Bonds in the open market. The Fed statement announced this last week but today's details were able to stem the losses further. The 3.5% coupon fell 22bp to end at 102.56. Stocks rallied on the above news. The Dow surged 272.38 to 11,043.86, the S&P jumped 26.52 to 1,162.95 while the Nasdaq rose 33.46 to 2,516.69. Oil gained 39 cents to $80.24/barrel - Gold finished lower to$1,629/oz down $10.80. Tomorrow Consumer Confidence will be reported.