Market Update
The Jobs Report hit the wires this morning, as the U.S. Department of Labor reported 110,000 new jobs created in September, which was above most economists’ expectations of 100,000.
With many people looking for a downward miss on this report, the stronger than expected reading pushed Bond prices a bit lower, causing home loan rates to rise. However, as I expected, the main reason for the selling pressure on Bonds was the huge revision to the job numbers reported for July and August--to the tune of 118,000 jobs.
The 200-day Moving Average did provide some support as the Bond dipped down to hit this floor and rebounded slightly. As long as the Bond remains above the 200-day Moving Average, I will recommend floating, but I will be watching carefully to make sure this support level holds.
With many people looking for a downward miss on this report, the stronger than expected reading pushed Bond prices a bit lower, causing home loan rates to rise. However, as I expected, the main reason for the selling pressure on Bonds was the huge revision to the job numbers reported for July and August--to the tune of 118,000 jobs.
The 200-day Moving Average did provide some support as the Bond dipped down to hit this floor and rebounded slightly. As long as the Bond remains above the 200-day Moving Average, I will recommend floating, but I will be watching carefully to make sure this support level holds.
posted by Capital Financial Network at 11:13 AM
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