The Bond Market is doing it for itself…

  • November 14, 2013

eurobond-cartoon.web_home_sliderThe Bond Market rallied late yesterday and there was no single piece of economic news that caused it.  Rates got a much needed improvement, decreasing the cost of the zero-point rate an additional 1/2 point. Jobless claims continued to edge slightly lower, but it wasn’t enough to move rates lower.

•   Freddie Mac reported the 30-year fixed mortgage rate jumped to 4.35% despite the recent market move.

•   Housing affordability eroded in the third quarter, the Housing Opportunity Index fell from 69.3 percent to 64.5. This was caused by improving home values and building costs also rising.  So, houses are less affordable, and current homeowners are happy about it.

•   Janet Yellen took the stand today defending her ultra easy money policy stating it is “imperative” that we see sustained economic growth. Job growth will be a major indicator for her policy going forward. Go ahead and ring your own bell, Janet.

Tomorrow, Industrial Production is forecasted to be flat in October. This gives little indication of actual economic growth. We need this sector to stand on its own two feet…

Bond Market 1Bond Market 2

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