Rates were lower at the market opening. But, they have moved back up in mid-morning trading. The early morning trading brought the 10-year Treasury down to 4.513% as bond markets continued to benefit from worries about shaky stock markets. When national and international stock markets are skittish, cash flows into the safe haven of treasuries.

The only economic item is the revised-Michigan Consumer Sentiment. It was lower than expected, but bond investors and traders pay little attention to the revised number. Economists were expecting 93.3 to 94.0. The University of Michigan reported the number at 91.3. Bonds reacted only briefly, and then turned in the opposite direction.

The big news so far this morning was started at 11 a.m. eastern {10:00cst, 16:00gmt}, Federal Reserve Chairman Ben Bernanke will speak on globalization and monetary policy, a speech which markets will carefully monitor given this week's international stocks problems.

It appears that the bond (stock markets, not soo much) like what is being said. At 10:45 eastern {09:45cst, 15:45gmt} the 10-year Treasury was -.010% with the rate to 4.544%. At 11:45 eastern {10:45cst, 16:45gmt} the -.026% to 4.530%.

Rates are good today, at least in part due to a flight to safety. One very important thing to consider, flights to safety are almost always temporary. Once things settle down, and the equity markets stabilize, the cash will flow back out of bonds and rates will go back up. We recommend locking today.

Steve Boxmeyer [612] 799 – 6858
steveb@LendWithIntegrity.com