Daily Market Update 5/8/09

Mortgage rates moved higher Friday, triggered by yesterday’s poor results of the 30 year Treasury auction. Rates are now at their highest levels since March 25. Investors are becoming increasingly concerned about the long-term prospects for interest rates as the economy continues showing signs of stabilization. Mortgage-backed securities had little reaction to today’s Non-farm Payrolls report that showed the U.S. economy lost 539,000 jobs in April, less than forecast. The Unemployment Rate rose to 8.9%, as expected. Average Hourly Earnings, a proxy for wage growth, rose a slim 0.1%. Stocks moved higher, the dollar fell. Several key economic reports are due out next week, including Retail Sales on Wednesday, the Producer Price Index Thursday, and the Consumer Price Index and Industrial Production Friday.

Leave a Reply

Your email address will not be published.

Back to top