Monday Market Commentary

by Alex Stenback on November 7, 2005

7_nov_rates
                                                         Graphic Courtesy MSNBC

Last Week
Rates took a sizable jump last week as the bond market digested a flurry of mostly mixed economic data – wages up, productivity up, Greenspan jawboning, a lackluster employment report, etc. End result was that rates moved up, perhaps as much as .25% in some product lines and markets.
This Week
Treasury auctions of 5 year and 10 year notes head the calendar on this holiday-shortened week.  The bond market will be closed Friday, and closes early on Thursday.  Conventional wisdom says that demand for the Ten Year Treasuries during Thursday’s auction will give some insight on rate direction over the coming months.  If the auction is well bid (many buyers) this will mean that investors are betting that rates, mortgage and otherwise, will drop somewhat over the coming weeks and months.  If buyers are scant, look for rates to spike higher.
ยท This Week’s Economic Calendar [barrons.com]

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