Daily Commentary by Larry Baer: The
number of Americans submitting new applications for jobless benefits fell by a
scant 1,000 during the week ended May 5th. The prior week's figure was revised 3,000
claims higher. The modest improvement
keeps the level of initial claims near their February lows and helps to reduce
worries the labor market has begun another round of significant
deterioration. The news produced some
minor selling in the mortgage-backed securities market -- but most mortgage-investors
do not yet see any reason to anticipate significant improvement in the labor
sector is just-around-the-corner - which in-turn would justify higher mortgage
interest rates.
The Treasury Department is set to conclude
this week's three-part Treasury auction schedule with today's sale of $16
billion of 30-year bonds. The auction
will conclude at 1:00 p.m. ET and I'll provide the result on my website as
quickly as possible thereafter. This
event is unlikely to influence the trend trajectory of mortgage interest rates
one way or the other.
THE
MARKET IS ALWAYS RIGHT! . YOU AND I ARE SOME OF THE TIME
