Thursday, May 29, 2008
Bonds are getting hammered today with the FNMA 5.5% 30 yr down 85 Bp for the day. The big winner today are stocks which meandered this morning for a while between positive and negative territory then shot up over 119 in the last 45 minutes. Moving the market today is the expected .9% improvement in the GDP (gross domestic product). Although it is in line with what analysts feet it would be, and it is more a showing that the weakness of the dollar has us buying less from overseas, it also shows that more countries are buying from us. In other news, first time jobless claims rose again 7,000 from last week, and 2,000 from estimates. This puts the number of people on unemployment at a 4 year high. Although a strong sign that we still have a long way to go, in the game of rock, scissors, paper; good news trumps bad news. The bond has dropped past all levels of support, so with a lack of bad news (good for bonds), we are looking at rates to continue to rise.
as always, if anything changes, I will let you know.
Karl Menzer
435-849-0212
If you would like to have the daily report e-mailed to you, please send an e-mail to karl@karlmenzer.com
