Commentary: The credit market continues to be dominated by events in Japan and Libya.
With nothing on the economic calendar to chew on, the lack of new shocks in the Japanese crisis, and few signs that the Libyan conflict is approaching a clear outcome, mortgage investors are caught in a temporary limbo.
The probabilities are high that this limbo (a condition where neither buyers or sellers are dominating trading) will not be heavily challenged until next week when Uncle Sam wades into the credit markets looking to borrow $99 billion in the form of 2-, 5- and 7-year notes and the news wires fire-up with the release of the much anticipated March nonfarm payroll numbers of Friday, April 1st. Overriding all of the auctions and economic mumbo jumbo will be the ever present threat of some major new development surrounding Libya and/or other Middle East countries together with meaningful shifts in the drama surrounding the potential of a nuclear meltdown in Japan.
It has been my experience that in times of great uncertainly - it is best to control your risk tangibly. Play it by the numbers.
THE MARKET IS ALWAYS RIGHT! . YOU AND I ARE SOME OF THE TIME
