Bonds were bludgeoned Wednesday on better economic news and more confidence coming out of Europe, although this morning the ECB poured a little cold water on the euphoria by refusing to expand a bond buying program.
Also this morning the ADP employment report got things started coming in better-than-expected and possibly foreshadowing another good nonfarm payrolls report on Friday.
Initial jobless claims rose from 410k to 436k last week, slightly above expectations. This is still below 450k confirming the better trend that the labor market has established in the past month.
And finally, pending sales of U.S. existing houses unexpectedly jumped by a record 10 percent in October fueled by the drop in interest rates.
Treasury bonds have found support this morning after the 10 year note hit a yield of 3.01%. The 10 year yield is currently at 2.95% and mortgage prices are slightly worse than Wednesday’s market close.
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