MBS RECAP: 10/17/2011

The following is a good recap of some of the news we discussed earlier as having a positive effect on bond markets overnight. Full story in the link, but here are a few highlights:

(Reuters) – Global stocks and the euro
fell on Monday after Germany dashed expectations of a
breakthrough to the euro zone debt crisis at a highly
anticipated upcoming summit of the European Union.

German Finance Minister Wolfgang Schaeuble said that even
though European governments would adopt a five-point platform
to address the two-year-old crisis, a definitive solution would
not be reached at the Oct. 23 summit.

The remarks took the wind out of recent optimism that had
sparked a rally in global stocks of more than 10 percent in
just nine days and had pushed benchmark 10-year U.S. Treasury
debt yields to post their best three-week advance since late
December.

Shares in Europe and the United States retreated and crude
oil extended losses. The euro slid from a one-month high
against the U.S. dollar touched earlier in the global session,
falling 0.9 percent to $1.3756.

“There’s nothing but uncertainty in Europe,” said David
Ader, head of government bond strategy at CRT Capital in
Stamford, Connecticut.

Article source: http://www.mortgagenewsdaily.com/mortgage_rates/blog/232926.aspx

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