Thursday, July 26, 2012

Weekly jobless claims came in @353k, expected @380k

Mortgage bond prices remain slightly weaker this morning pushing rates higher.

The headline figures of the economic releases this morning were not rate friendly, but some of the underlying components resulted in mixed reports.

Weekly jobless claims came in @353k, expected @380k. This was not rate friendly. Durable Goods Orders up 1.6%, expected up 0.4%. This also pressured rates. However, the ex-transportation component of the durable goods release showed a 1.1% decrease which was considerably weaker than the expected unchanged reading.

News out of the euro zone indicated the European Central Bank would boost efforts to shore the instability. Full details This reduces the flight to quality buying of U.S. debt instruments in the short term. However, the euro zone troubles are far from over. Spain and Greece remain in dire shape. Full details

Expect additional volatility!

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