Treasuries stabilize

I have been spending quite a bit of time on Treasury bonds lately because of the importance the yield has to the economy.

Earlier today, prices bounced back and yields fell as buyers stepped in to take advantage of more attractive rates. Yesterday, Moody's reassured nervous investors that the triple-A rating the US enjoys is safe, at least for now, aiding the benchmark security.

But sellers have stepped and the ten-year note is holding slightly above the unchanged mark. The story remains little changed: the extraordinarily high level of supply needed to finance a burgeoning budget deficit is scaring away investors.

Consequently, mortgage rates, which are tied closely to the ten-year bond, have jumped in recent days.

Separately, a look at jobless claims, durable goods orders, and new home sales can be seen on my homepage at Examiner.com.