Commentary: The Labor Department reported earlier this morning that the number of American workers standing in line to file first-time claims for government unemployment benefits rose by 26,000 to 397,000 during the week ended March 5th. Claims have decreased in four of the last six weeks, and the current level is well below the 2010 average of 457,000. When the economy creates lots of new jobs, weekly applications for jobless benefits unusually drop below 400,000 for an extended period of time. The modest uptick in the weekly jobless claims number this morning was just enough to sustain the current move favoring steady to fractionally lower mortgage interest rates - but this condition will be subject to change depending on the result of today's Treasury Department debt sale.
Uncle Sam is conducting a $13 billion 30-year bond auction with final bids due by 1:00 p.m. ET this afternoon. Analysts are almost split evenly among those who believe this offering will draw solid demand - especially from foreign investors - and those who believe the bidding for these securities will fall far short of the appetite shown for Tuesday's 3-year notes and yesterday's 10-year notes. It is a close call - but I think we will be extremely lucky if we escape the day without a sell-off developing in the mortgage market producing lower investor prices and slightly higher note rates. I'll post the auction results on my website as soon as possible once the final gavel falls. Heads up.
THE MARKET IS ALWAYS RIGHT! . YOU AND I ARE SOME OF THE TIME
