Mortgage Backed Securities are minus 16bps this morning and are down 47bps since yesterday afternoon.

Equity markets rallied yesterday afternoon and continue the rally here again today. Last week we had investors pile into the bond markets like clowns into a small car at the circus. That took the 10 year Treasury yield to the 2.83. We are now at 3.08 on a 10 year Treasury as the clowns are now piling out of the car. Most of that movement happening in the last 48 hours. This as Greece pushed to get austerity measures pushed through the parliament.

This morning the Greek parliament voted to approve the austerity measures as people rioted in the streets.This is a tale of a country that could not get its spending in line with its tax base. Does that sound familiar to anyone?

This will take investors out of the safe haven of bonds for the immediate future. That means Milwaukee Mortgage rates could continue to rise. We also have an auction this afternoon. The last two auctions were rated a C and D. Better equity markets and bad auctions spells higher mortgage rates. Remember this is the last auction where the Fed is to participate.

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