Rate Update June 13, 2008

Rates moved higher yesterday upon further selling pressure in the bond market. However, we are shifting our outlook to a floating position today. In yesterday’s ‘rate update’ we stated that , “From a technical standpoint we are testing multi-month lows on bond prices. We may see a bounce off these lows which would help rates move lower.” You can see this in the chart below where we circled the lows we reached at the beginning of March. Yesterday bond prices reached that same low and this morning bonds are trading higher which should help rates move back lower.

Current Outlook: floating