Bonds were clear winners yesterday, putting in a strong rally on the weaker than expected economic reports. Assisting the bond rally was the steep decline in stocks, which shave 280 points off the DOW. The yield on the 10 year note broke through 3%, closing at 2.96%.
422,000 new jobless claims were filed last week, a number higher than estimates, and marking the eighth consecutive week claims have remained above the pivotal 400,000 mark. With Wedenday's weak ADP jobs report and continued high weekly jobless claims the estimates for Friday's payroll data have become increasinly uncertain. Some economists remain with previous forcasat of +175,000 while others have lowered their estimates to +105,000. This is clearly a broad range leaving much uncertainty about the data and how the markets will react.
This morning bonds are giving back some of Wednesday's gains, with the yield on the 10 year note rising to 2.99%. Mortgage pricing is worse by .10% to .20%.
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