June 30th, 2009 12:32 pm | by John Jansen |

Mortgages are a tick or two tighter to swaps and buyers have emerged as the Treasury market recovers. The plunge in stocks is for the moment buttressing the Treasury market bid.

Dealer s report real money buying of mortgages as well as money managers, the Federal Reserve and Asian investors.

As we approach month end the basis should improve as buyers surface for the index extension.  Additionally, balance sheet shackles will be removed tomorrow and some additional buying power should emerge at that point.

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