4/1/10

Most rate prices worsened today this first day of April, a new quarter and the “new” market without the Fed buying mortgages. No, rates haven’t fallen off a cliff without the Fed today, but strong jobless claims—the lowest since 2008—and a stronger than expected ISM manufacturing number—the first time all components signaled expansion since April 2006--are pressuring bonds and boosting stocks. The Dow is up over 60-points at the moment, tickling the evasive 11,000 mark. Adding pressure, the market is set for an early close tomorrow for Good Friday ahead of Easter Sunday. Tomorrow brings the big Jobs report and for the first time in a long time we’re expecting a positive number. Given the Fed’s exit and the early close it should make for an interesting day. Stay tuned!