Final Update/ Week of October 5, 2009

Good Morning Everyone and Happy Friday! Rates are changing a bit…the ongoing battle between equities and mortgage backed securities continues!

The stock market is in positive territory again today . . . a stellar week for equities. The very happily surprising thing that occurred this week is that rates actually got better as the stock market made gains. We have been very lucky of late. Today is the Friday before a 3-day weekend, and credit markets typically run for cover. Stocks started their upward movement this morning and credit markets have just slid all morning. Rates are delayed late due to the fact that several of our sources have repriced already, and I wanted you to get the most updated rates. I’ll forward them as soon as I get them.

Ben Bernanke started things off last night when he made comments after the closing bell that the Fed will have to keep rates low for an extended period of time, but at some time in the future, they’ll have to tighten monetary policy (raise rates). This should have come as no surprise, but his comments have bolstered the dollar, caused commodities to drop and have put added pressure on the bond market today.

As I mentioned, today is the Friday before a 3 day weekend. We will be closed on Monday for Columbus Day, and will be back in the office on Tuesday ready to go. Credit markets should recover a bit next week, too

I’ll be in the office all day today . . . call me here or better yet email me if I can help you out in any way. Have a terrific Friday and a very restful and relaxing long weekend!