Thursday, June 12, 2008
This morning the bond found its level of support..... and then shot lower. With May retail sales beating everyone's expectations by .5%, it seemed that the much worse than expected unemployment numbers, which came in at 384,000, took a back seat. Bonds are still tracking down and we have already seen a re-price for the worse today. Oil is also down, which make stocks the winner of the day. With so much worry in the banking industry, we are going to be hard pressed to find a level of support. Tomorrow's CPI may show an increase in inflation, but with the Fed already hinting around at a rate hike, locking the loan as soon as soon as you can is still the best option. The FNMA 5.5% 30 yr is down 73 Bp for the day and 28Bp since pricing came out this morning. We are looking at some of the worse rates since early march, and don't see any major improvement in the near future. As always, if anything changes, I will let you know.
Karl Menzer
435-849-0212
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