MBS- FNMA 4.5 price: 99-14

10-yr Treasury Yield: 3.83%

The measures above have indicated a pretty significant drop in demand for these two securities in the last week or so.  It generally indicates an increase in mortgage rates is here.  I’ll be traveling today, so it will be several hours before the next update, but I will be looking into what is driving this trend.  Although this article below from Bloomberg does spell out some of the story:

Morgan Stanley Sees 5.5% Note as U.S. Faces Deficits.  Link to article…

Of course, this one is worth taking a look at too.  Even with unlimited backing from the Treasury this stock remains basically a penny stock.  Amazing.

Fannie, Freddie shares rocket on Treasury pledge.  Link to article…

Hope everyone had a nice Christmas holiday!