Market Color: Can civil unrest in one part of the globe lower mortgage rates? Apparently so and oversized fingers on a stock market trade for some lucky trader who will have some explaining to do that sold 38 billion shares of Proctor and Gamble instead of 38 million shares can contribute as well. At one time the bond market was improved by almost 1.0% yesterday. Things remain a little unsettled today as investor worries and jitters continue. Our bond market started out negative and now has swung to the positive. Market psychology is ever so fickle. Nonfarm payrolls printed much higher than expectations, +290K vs. +190K consensus; the unemployment rate jumped up .2% to 9.9%; U6 is up to 17.1%. The SEC will conduct an investigation as to what happened yesterday with a supposed mis-entered trade and the subsequent almost 1,000 point DOW sell-off and immediate 650 point rally from the low. Right now, the futures market is pricing in a 67% chance that the Fed keeps rates at .25% through September 21st, 2010. Currently, the Ten Year yield is at 3.46% (3.56% yesterday). And your 30 year fixed rate mortgages are up .25% but rate sheets have not come in from investors to reflect it as of yet.
Comments(1)