Mortgage rates are unchanged this morning after improving yesterday.
There isn’t much to report today. No significant economic data was released today and trading in the financial markets is thinning as participants begin their holiday breaks.
Bill Gross who manages the world’s largest managed bond fund is reportedly putting his money where his mouth is. Over the past few weeks he has told numerous financial news outlets that he believes US Treasuries are overvalued and that long-term yields will rise in 2010. I share the same sentiment.
This morning it is being reported that Gross has reduced his exposure to US Treasury securities by reducing the amount held in his fund. Gross doesn’t have a perfect track record with regard to making predictions but he is an industry thought leader so his comments will impact other trader’s thinking.
I am going to shift our outlook to locking after rates improved yesterday.
Current outlook: locking bias