I Got no Place Else to Go

by Tom Tousignant

in Blog

Just like Richard Gere’s character in An Officer and a Gentleman, central bankers recently acknowledged “I got no place else to go” when looking at the US debt and US Dollar.  Part of the recent run up in interest rates was due to speculation that foreign central banks would not continue to buy all the US Treasuries and Mortgages Backed

10Yr Treasury Yield

10Yr Treasury Yield

Securities that were hitting the street.

Last week Japan’s Finance Minister said that Japan’s trust in the US Treasuries is ‘Unshakeable’. 

Russian Finance Minister Alexei Kudrin said Russia has no plans to switch to a new reserve currency they have confidence in the Dollar.

After 3 weeks of rapid increases in mortgage rates, from the mid 4’s to the mid – upper 5’s, we had two really good days last week and hope to see the downward trend continue.  ‘

Rates still have a long way to go to get to the lows of April, but the improvements last week, coupled with confidence from overseas, should help rates improve further this week.

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