Rate Watch Friday 3-13-2009

Cautiously Floating:

Mortgage Bonds have are trading in a wild sideways range this morning.
Adding to the volatility is news that China is concerned the US may be spending too aggressively on the recession, which may lead to inflation down the road that would diminish the value of Bonds and China's investments in the US.
The Stock Market is reacting positively to Congress's hearings on mark-to-market, as well as Citigroup's announcement that it will not need more TARP money from the government.