Daily Commentary by Larry Baer: The
outcome of elections in France
and Greece
on Sunday has rekindled concerns about the euro-zone's ability to address its
sovereign debt problems. Capital fleeing
the region on fears the single currency union is stumbling along a path to
break-up has created strong "flight-to-quality" demand for U.S.
dollar denominated assets likely Treasury debt obligations and agency eligible
mortgage-backed securities -- a
phenomenon that is almost single-handedly supporting the near-term prospects
for steady to perhaps fractionally lower mortgage interest rates.
The Treasury Department is set to sell $32
billion of 3-year notes today. The
auction will conclude at 1:00 p.m. ET and I'll provide the result on my website
as quickly as possible thereafter. This
event is unlikely to influence the trend trajectory one way or the other.
THE
MARKET IS ALWAYS RIGHT! . YOU AND I ARE SOME OF THE TIME
