Monday, August 25, 2008
Rate Watch 8/25/08: Carefully Floating
Bonds are catching an improvement this morning with the uncertainty in stocks caused by weakness in Fannie Mae, Freddie Mac and Lehman Brothers (still no suitor for Lehman Brothers). Technically, the Fannie Mae 6.00% Bond is trading at 100.56 which is in between the ceiling of the 100 day moving average at 101.06 and the floor of the 50 day moving day average of 100.25. At 9:00 a.m. MST, existing home sales just came in slightly higher than expectations which is continuing to help Bonds. For now I recommend floating and see if there is continued improvement in Bonds as the day goes on.