Short Term Trading Member Forum

[techcharter]

ABX Mortgage Indices Still Consolidating

The best AAA rated index cracked 94c and looks like a zigzag is nearing completion off the lows two weeks ago. The next best AAA rated index is about to climb above the 90c mark.

This is definitely a false rally as LIBOR is now higher than it was in August, DESPITE CENTRAL BANK INTERVENTION. If the banks don't trust each other's IOU's, then why trust the bank, or another debtor, with your money?

I'm looking for the debt markets to get really ugly next week. Treasury yields may actually RISE as they and the stock market are the last sources of liquidity.