Please read the following snippet below from last Thursday (AP), (edited down, of course).
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NEW YORK (AP) THURSDAY 07.18.08 — Treasury prices fell sharply Thursday as several upbeat earnings reports, falling energy prices and an unexpected jump in housing starts alleviated some of investors’ concerns about the economy. The news lured investors back into stocks and away from the relative safety of government debt.
Treasurys were benefiting earlier in the week as Wall Street fell on uneasiness about the financial services sector and the broader economy.
Stocks also soared because the price of oil declined sharply for the third straight day. The Dow Jones industrials rose more than 200 points and logged the best two-day percentage gain since October 2002.
Kevin Giddis, managing director of fixed income at Morgan Keegan, said the bond market will remain choppy until stocks appear to stick with a direction; advances like the surge on Wall Street the past two sessions have often been given back quickly. Investors have jumped between both markets depending on the strength of corporate and economic news.
“This has been a wild and crazy last few days, and the focus is on the credit markets,” he said. “We’re bouncing back and forth on this safe-haven play all day long, and we will have volatility until we get a better idea about earnings, credit and the economy.”
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Unfortunately, the trend continued through Friday, leaving us with some of the highest rates we’ve seen this year.
However, as Kevin Giddis said above,
“Advances like the surge on Wall Street the past two sessions have often been given back quickly.”
And this week is chocked full of economic reports which hopefully will bring our rates back to the level we started the beginning of last week…
I will keep you posted as we move forward. J
I hope you all have a great Monday, please be sure to give me a call or send me an email if you can refer anyone who is thinking of purchasing or refinancing.
Hope to hear from you soon,
Matt
