Mortgage Backed Securities are Minus 22bps this morning.

The results of yesterday's auction were fair at best, This started a slide in MBS yesterday afternoon. The slide continues today as equity markets are rising over optimism in Greece. Olli Rehn, the European Union's commissioner for economic and monetary affairs, in a statement Tuesday said

The austerity and privatization measures "must be approved if the next tranche of financial assistance is to be released," Rehn said. "To those who speculate about other options, let me say this clearly: there is no Plan B to avoid default."

Greece is being told it has to pass the austerity measures because there is no other way they will get more bailout funds. That will put some confidence back in the equity markets. That means money will be taken out of the safe haven of bonds and back into stocks. That means Milwaukee mortgage rates will climb with confidence.

There is another auction at noon Milwaukee time. Another poor showing and rates will be on the move higher.

www.mortgageserviceswi.com/mortgage-rate-commentary.