Thursday, April 24, 2008
It's a good market news day, which is pulling the bond down pretty hard. Durable goods orders came in better than expected today. Although most of it was defense related orders, investors looked at it as good news and ran with it. Other positive news was that Jobless claims dropped unexpectedly this week. Analysts had expected the number to be close to 375,000, so when the number came in 33,000 lower, the market rallied and sold off those ever important bonds. The only bad news in the market today is that new home sales fell to the lowest levels in 16 years, down 8.5% from last Mont and 50% from last year. This in what should be the spring pick up time. Currently the bond is down 50 Bp for the day, and as of 11:54 am I have started seeing re-prices for the worse. Rates are a bit higher today, so if you need to lock, I suggest that you do it now. If you missed the rate change, tomorrow is another day.
Karl Menzer
435-849-0212
