Finding A Comfort Zone…

  • December 19, 2013

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Yesterday was a wild ride for the Bond Market. After almost six months of speculation the FOMC finally announced a taper timeline. The Fed will reduce bond purchases by $5 billion for both Treasuries and MBS.  After the dust settled, the market opened down as investors found their footing.

  • Today, the number of people filing for Jobless Benefits jumped to 379k, coming in 42k over forecast. Don’t get too excited, the Labor Department stressed the long term trend continues to improve and the Initial claims remained flat. This tempered the effect on the market this morning.
  • Philly Fed Survey, which measures manufacturing activity, rose half a point to 7.0 today.  New orders rose almost 4 points to 15.4 suggesting the economy continues to expand and improve.  Nothing too shocking here.
  • GDP will be announced tomorrow, however economists do not expected a significant movement from the last reading. Hopefully, we can take tomorrow nice and easy.

I am still tired from all the excitement yesterday! Let’s hope the market volatility subsides and we can finally settle into our new comfort zone.

By Lindsey Fediuk, Quicken Loans Capital Markets Analyst

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