Marekt commentary

The weekly jobless claim figures continue to give positive indications about the labor market, with initial claims for last week falling 10,000 to 382,000. The four week moving average, which reduces the weekly volatility, also fell to a reading of 389,000. News from Europe is not as positive as Portugal caves and asks the ECB for a bailout, and in an effort to fight inflation the European Central Bank raised its key lending rate by .25% to 1.25%. Back in the U.S. oil remains above $108 per barrel and our elected leaders struggle to reach a budget accord. Interest rates continued their ascent on Wednesday with the yield on the 10 year note rising to 3.55%. Bonds have opened flat this morning, however, after Wednesday’s declines mortgage prices are worse by approximately .25%.