Daily Market Comment

Since the beginning of the month, Mortgage Bonds have been battling an overhead ceiling of resistance. Prices have been unable to make a convincing move above this ceiling, thanks in part to recent Treasury auctions and a resilient Stock market.
Earnings season kicked off yesterday, and as always, aluminum giant Alcoa was the very first company to report. Alcoa beat expectations and returned to profitability for the first time in a year, which is giving a lift to Stocks so far this morning but at the expense of jobs.
Initial Jobless Claims Report were released today coming in lower than expectations and were the fewest claims since the 1st week in January.
The Treasury auction results will hit at 1:00pm ET, as the government auctions off $12B in 30-year Bonds and it could have an impact on the Bond market. For this morning, I will recommend to Carefully Float, but I will be on guard for a reversal as Bond prices battle tough overhead resistance. If anything changes, I will let you know

Leonard Winslow, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.