Mortgage Backed Securities are Plus 0 this morning.

The FOMC will release the minutes from its last meeting today at 1:00. It will give us a look at the discussions of the last meeting. It will tell us what the Fed thinks about the economy and inflation. The may even mention the affects of the Fed not buying Treasuries as today we have the first auction since the end of QE2. That auction will be at noon today. The markets will be moved on these auctions.

"Longer-maturity Treasury prices were supported by the turmoil in the European sovereign-debt crisis as fears that Italy will be dragged into the problems attracted investors to less-risky assets such as bonds". This is from a Marketwatch.com article. The article confirms that the recent move into bonds is based on the Euro zone again. That will help today's auctions as investors flock to safety.

We have been writing that the natural direction of rates is higher. It seems every time we are ready to move rates up there is another debt crisis. This has been really good for the Milwaukee Mortgage Rates. The problem is it is not good for confidence and the economy.

We should see in the coming weeks that the debt ceiling will be lifted. That will be another boost to the markets. We believe that rates will be trending up. Take advantage of the low mortgage rates while there is still an opportunity.

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