Bond prices sank on Wednesday as the market faced signs of improved economic growth. Comments from Fed Chairman Bernanke and the release of the Fed’s Beige Book suggested the U.S. economy was gaining footholds, however, weakness remains in both residential and commercial real estate.
This morning we saw a report telling us new claims for jobless benefits rose sharply last week, although this was downplayed to due to the Good Friday and Easter holidays. In addition the jobs data, the Philadelphia Federal Reserve released their month factory index which rose to 20.2 from 18.9 the previous month. Keep in mind a reading above zero indicates expansion of manufacturing activity.
U.S. treasuries and mortgage bonds have improved slightly this morning; however, they remain well below where the market opened on Wednesday. Keep in mind, HSOA did not go through a price change for the worse on Wednesday and we thank all of you folks who delivered and locked your loans with HSOA!
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