This morning both the latest release of the Initial Jobless Claims report and the preliminary 1st quarter GDP report reflect a weakening recovery, causing a rally in treasuries as investors look for safer assets. The number for first-time filers for unemployment benefits increased by 25,000 to 429,000 during the week ended April 23, the Labor Department said. Economists had expected the number to decline to 390,000. The Commerce Department said U.S. GDP decreased to 1.8% during the first quarter, down from 3.1% in the fourth quarter, as the economy's growth slowed. Yesterday's FOMC rate decision and Bernanke's following press conference were relatively uneventful; economic recovery is moderate and the Fed will keep the current historic low lending rate for a couple more meetings. Later today at 1:00 pm EST, $29 billion of 7 year treasury notes will be auctioned. Mortgage rates are roughly 0.25 better from yesterday morning.
Comments(0)