10 Oct Locking Bias
Stocks surged at the open this morning, as news of an offer from the House to extend the debt ceiling by 6 weeks was reported. The Dow popped up by over 200 points, and is currently trading above 15,000. Initial Jobless Claims came in 66,000 higher than the previous week, but there is also a report of inaccuracy associated with that figure. Investors will likely put that report in context, as well as less important than politics right now. The jump in stocks has pressured mortgage bonds lower, which will push interest rates up a notch from where they were just last week. We will maintain a locking bias on short term transactions.