Monday, November 02, 2009 7:20 AM
Price Trend: Negative Price Volatility: High _________________________________________________________________
Current Conditions:
Today’s Economic Data (PST) ISM    7:00
Pending Home Sales    7:00 Construction Spending    7:00
FNMA 4.5 GNMA 4.5 10yr Yield
101-02 (-3) 101-09 (-3) 3.422
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Commentary:
Bonds are down but off their morning lows in a curious reaction to some fairly positive economic data. The ISM survey was definitely the highlight of the morning and the report definitely showed more strength in the manufacturing sector than expected. The headline number came in well above expectations and a look at the details of the report showed higher prices paid and the first positive employment reading in a very long time. Construction spending also beat estimates as did pending home sales. The “normal” reaction to data like this would be for stocks to climb and bonds to fall. Stocks are doing their part with all of the major indices showing gains but bonds have not seen the selling that one would expect.
We have a busy week ahead. The FOMC begins their 2 day meeting tomorrow with the release of their policy statement on Wednesday. ISM Services is also due up Wednesday and the employment report will be released on Friday.

Richard Sellers

E-mail

elitesellers@gmail.com

Website

www.arrowheadlifestyles.com

Office Phone

(909) 336-2131

Cell Phone

(909) 553-1897

Fax

(909) 336-2500

Address

27206 Hwy 189, Blue Jay, CA, 92317

Description

"Life isn't about how to survive the storm, but how to dance in the rain."

Real Estate Broker, DRE CA License #01148405

Lake Arrowhead Lake Fronts, Lake Arrowhead Properties, Lake Arrowhead Yacht Club, Lake Arrowhead Country Club, Horse Property, Sailing Lake Arrowhead, Lake Front Living, Mountain News, Boating.