4/8/10

Yesterday we continued to see bonds’ prices improve, and rates drop, after a solid 10-yr sale by the Treasury. The bond market was helped by Ben Bernanke’s somber statements about the economy not being out of the woods yet and the fact that inflation is not an issue. Today we got our first economic news of the week, with Initial Jobless Claims coming in at 460,000, up 18k from 442,000. The 4-week moving average moved up slightly. After the number mortgage prices are slightly better.