The Bond markets soared today while Stocks plunged due to an ugly jobs report and concerns over the Euro debt crisis. The 3.5% coupon surged 31bp to end at 105.31, an all-time closing high price while the Dow lost 274.88 points or -2.22%.
The 30 Year Conforming Fixed Rate stands at 3.478%- No Points and the 15 Year Conforming Fixed Rate is 2.984%- No Points as I write this.
Technically, Bonds can move higher but prices are overbought. It wont take much to cause Bonds to reverse from these frothy levels, so for short-term transactions, you may want to lock. Longer-term floating.
Bloomberg Interview
Earlier this week John Sauro was on Bloomberg radio with Kathleen Hays discussing the state of the lending markets. Click here for interview http://tinyurl.com/6vjcfxr
Housing News
The Case Shiller Home Price Index sees a modest 0.1% rise in March for the 20-major cities surveyed, down 2.6% for the year. The -2.6% drop year-over-year ending in March is up from the -3.5 decline in February.
The Spring Home Buying season traditionally the busiest time for home sales is shaping up to be the strongest since the crash, as per Reuters report.
Economic News
Consumer Confidence falls to 64.9 in May from the 68.7 reading in April and was the lowest reading since January.
Q1 GDP falls to 1.9% from the initial reading of 2.2%.
Initial Jobless Claims rise 10K to 383K and above the 368K expected.
ADP reports that the private sector added 133K jobs in May, below the 157K expected.
The 10-yr T note Yield falls to 1.44%.
Jobs Report – The US Economy Created 69,000 Jobs in May, Far Less Than the 150,000 Expected; Jobless Rate Rises to 8.2% From 8.1%