Monday, April 21, 2008
With little in the lines of economic reports today, the bond is relying more on the stock market today. With Bank of America (the guys in the process of buying Countrywide) stating today that their profits fell 77% from last year, and 30% of economists feeling that the economy will shrink in the next year , the DOW is down over 80 points. This has had a positive reaction to the bond which is up 18 Bp for the day, and 28 Bp from when pricing came out. We are above the 50 and 100 day moving average. This is good as it is also above the level where it broke past the level of support last Thursday. With the level of support looking like it will re-set on or above last week's level. As always, if anything changes, I will let you know.
Karl Menzer
435-849-0212
