Wednesday, April 23, 2008
It takes real self control to not watch the bond constantly and today is no exception. Bond insurer Ambac reported a loss today of $1.6 billion. This was much worse than analysts expected and dropped their stock down to under $ 5 a share. They were $95 a year ago (ouch). Oil is becoming the main driving factor in the market today, with it almost reaching $120 a barrel yesterday before retreating back to the $117 range. The stock market is up a little over 20 points, which is helping pull the bond down drastically. Currently the bond is down 40 Bp, but seems to be finding support at the 50 and 100 day moving averages. With the March Durable Goods, Weekly Jobless Claims, and March New Home Sales reports all coming out tomorrow, and investors starved for any economic news, it looks like it's a float day today. As always, if anything changes, I will let you know.
Karl Menzer
435-849-0212
