After last week’s sharp decline where Mortgage Bonds lost 181bp, prices are trading slightly lower so far with not much action to report today.
Foreign investment in our markets remains healthy as the April Treasury International Capital (TIC) report showed Net Foreign Purchases were $115.1 Billion in April up from the March report that showed a net $79.6 Billion in foreign purchases. Long-term interest rates here in the US have remained relatively low, thanks in part to foreign countries continuing to buy our Bonds, including Mortgage Bonds.
