Rates are a bit worse this morning after mortgage bonds took a beating yesterday given preliminary job data appears to be setting us up for a strong employment report tomorrow. Yesterday private sector job data came in very strong, followed up today with lower jobless claim numbers. Some of this appears to be seasonal but the overall strength of the data remains. Currently bonds are attempting to regain some losses in light trade and stock market indices are negatively largely on energy stocks. So far the trading session has been choppy as market sets up for tomorrow’s big jobs report and next week’s round of auctions. The 10-year Treasury yield is hovering around 3.421% significantly higher than when Ben B. and the Federal Reserve announced their dollar busting QE2 scheme…accomplishing the opposite of his stated policy objective of lowering and stabilizing rates….makes one wonder what the real objective is.
In the news today… For more detail, click on the Market-Headlines attachment
- Fewer Americans Filed Jobless Claims Over Past Month (beware seasonal adjustments and general government B.S.)
- In 2011, Fed Will Be in Watch Mode (watch them purchase a trillion in US Treasury debt)
- Foreclosures May Be Undone by State Ruling on Mortgage Transfer
- Soros Mistrusts EU Aid as Irish Default Risk Soars (Soros mistrusts? I think we should mistrust his as he is a currency manipulator extraordinaire.)
Reading Suggestion of Today… The 5000 Year Leap by W. Cleon Skousen
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