Yesterday, mortgage rates inched higher for the first time in four days. This move was caused by a stronger than expected Initial Jobless Claims report.
The Fed had no surprises for us yesterday stating again that bond buying would continue despite rumors they would curtail purchases earlier in the day. Yesterday’s statement was almost identical to the previous statement, which failed to move the market in any dramatic way.
Today will probably be the last calm day for the bond market. The Chicago PMI Index has the potential to move the market if the numbers significantly under perform.
Mortgage rates officially hit new lows late last week – by a small margin. A Friday morning rally was caused by a weaker than expected GDP.
Treasuries remain unchanged again yesterday with no news of moving the market. A weekly report to be released today should show initial jobless claims have remained unchanged from last month hovering at 350,000.
The market appeared to rally for a nanosecond when an erroneous tweet hit the headlines. Hackers attacked the Associated Press Twitter account stating the White House had been attacked.
Treasuries advanced for a second day in a row amid concerns global economic growth is slowing. Both China and Europe manufacturing reports underperformed for the month, spurring demand for safer assets.
Bond dealers on Wall Street announced on Friday they see little chance the Fed will slow the pace of debt purchases, even as policy makers face calls to curb their buying.