Monday, June 02, 2008
YOU'RE FIRED!!!! And with that investors became worried about the market and have given us a small rally in the bond today. Today the CEO's of both Wachovia and Washington Mutual were asked to step down as chairmen. To add to bond, today's economic reports, although better than expected, both cam in lower. With the ISM Manufacturing index once again below 50 (which means contraction in the economy), investors are looking at the six time in seven months as a sure sign that the worst isn't over. Another good sign for the bond is that although construction spending fell only .4%, residential construction dropped a whopping 2.3%, which was the 26th month in a row we saw a decline. The FMNA 30 yr 5.5% up 40 Bp for the day, and 21 from 10 a.m. when pricing came out. This may put us in line for improved rates later today. The recommendation is to keep that rate floating, but keep an eye out just in case we see profit talking today.
Karl Menzer
435-849-0212
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