A week after the jobs report euphoria and the bond market has finally digested the report in its entirety. In sports they say a bad team is on a winning streak at two games. So what do we make of 5 straight days of gains since Friday the 8th of November (bond market was closed on 11-11-11 for Veteran's Day)? The chart below reflects how the traders in the bond pits and the US Govt was viewing bond pricing: it was too low and the economic outlook too optimistic following the Jobs Report.
Bond pricing have recaptured all of the losses from a week and are trending higher. I think enough people in the trenches think a Fed Taper of Bond purchases is still a few months away. I like the bounce in pricing and lowering of mortgage rates but feel our market is too fragile to bank on it to continue this trend in a straight line. If you regretted not locking prior to the jobs report, your chance to do so is today---LOCK IT. Streaks are made to be broken...this one will be too. But when? I'll check in later this week.
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