Strategy Going Into Tomorrow's Jobs ReportThe Fannie Mae bond is currently trading 9 basis points lower than yesterday's close and stocks, which started the day on a run, are now up only slightly on the day. But the big news is tomorrrow's jobs report. Analysts are estimating that 500K jobs will have been created in the month of May.
Lock or Float?
The ADP report came out today in line with expectations and the bulls are looking for a reason to rally. Though there is much uncertainty throughout the world that can have an impact on the markets, a solid jobs report tomorrow will be interpreted positively and will move stocks higher. Even if the numbers miss the 500K mark, there is still a good chance that markets will receive the news as a favorable sign. Remember, stocks and bonds compete for investment capital so if stocks do well, bond prices go down and rates go up. I think there is more risk in floating than locking. I advise Apply and lock now.
Copyright © 2012 Carolina's Lending Source, Inc.Portions Copyright © 2012 a la mode, inc.Another XSite by a la mode, inc. | Admin Login| Terms of Use| Site Map
