Market Update Nov 17th, 2009

Market Update- Tuesday November 17th, 2009 11:13 AM ET

Current Trend Direction: Bond Prices Higher/Rates Lower


Risks favor: Carefully Floating


Current Price of FNMA 4.50% Bond $101.84, -3bp



Are the television business commentators looking at a different economy? You would think so as the media continues to paint a rosy picture, but Main Street isn't seeing any of it. For a more realistic sobering view, here's what Kansas City Fed President Thomas Hoenig had to say about the economy, "We still have significant weakness to work through in the economy in the US, and coupled with a rapidly rising level of debt and enormous moral hazard issues, we have a great deal of work ahead of us"


Fed Chairman Bernanke will be speaking on the economy at the Economic Club in Manhattan. The Chairman's comments yesterday sparked a rally in equities as he indicated no real concern for the devaluation of the dollar.


There are no treasury auctions this week. However, Thursday morning's announcement as to the size of next weeks auctions of 2, 5 and 7 year Notes could be a market mover.

We continue to cautiously float rates here and remain on guard.



30 Year Fixed Rates

4.75% APR 4.77%- No Points


30 Year Fixed No Income Check

5.625% APR 5.649% - No Points


30-Year Jumbo Fixed Rates to $729,000

5.125% APR 5.138% - No Points

4.875% APR 4.888%- 1 Point


30-Year Jumbo Fixed Rates to $1,000,000

5.75% APR 5.81%- No Points


5/1 Jumbo Arm to $1,500,000

4.50% APR 4.54% - No Points




7/1 Jumbo Arm to $1,500,000

4.875% APR 4.69% - No Points