Market Comment
Bonds started the day to the upside, but are now trading near unchanged after stepping into negative territory.
The erratic behavior is due to opposing forces tugging at Bonds. Fueling Bonds is the Stock market selloff and financial uncertainty in Europe. But sentiment that the economy is improving is also pressuring Bonds. This makes the market very volatile, and important headlines like today's Initial Jobless Claims--which came in a touch above expectations--do not result in normal market reactions.
Currently, Bonds are overbought and may be ripe for a selloff. Therefore, I recommend locking ahead of tomorrow's official Jobs Report, since there is more to lose than the modest gains that might be made.
Leonard Winslow, New American Mortgage, Charlottesville
434-760-2580 (cell)
leonard.winslow@newamerican.com
www.newamerican.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112
The erratic behavior is due to opposing forces tugging at Bonds. Fueling Bonds is the Stock market selloff and financial uncertainty in Europe. But sentiment that the economy is improving is also pressuring Bonds. This makes the market very volatile, and important headlines like today's Initial Jobless Claims--which came in a touch above expectations--do not result in normal market reactions.
Currently, Bonds are overbought and may be ripe for a selloff. Therefore, I recommend locking ahead of tomorrow's official Jobs Report, since there is more to lose than the modest gains that might be made.
Leonard Winslow, New American Mortgage, Charlottesville
434-760-2580 (cell)
leonard.winslow@newamerican.com
www.newamerican.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112
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