Stocks are trading near unchanged levels and Mortgage Bonds are a bit higher so far this morning. It’s another quiet news day, but Initial Jobless Claims for the week ending 11/8 were reported at 290k. This was a bit higher than expectations of 288k, and represented an increase of 12k from last week’s number, which was unrevised at 278k. Claims did move a bit higher last week, but this is still a decent number.
Later today at 1pm ET there will be a 30-yr bond auction. After yesterday’s weak 10-Yr note auction, we will watch this closely as this can always move the markets.
Mortgage Bonds are in a wide range between overhead resistance at 103.35 and support at the 50-day Moving Average. We have to be careful because Bonds could whipsaw one way or another. Stocks have started to move sideways after a parabolic move higher. But the Stock market has been incredibly resilient. We have to keep a close eye on the next move for Stocks as it will likely dictate the direction in Mortgage Bonds.