Jobs Report Disappoints

The Jobs Report indicated a sorely disappointing 96,000 new jobs for the month of August.  That caused the bond market to spike higher and mortgage bonds regained the losses of the last few days.  Ironically, the stock market is close to even  That indicates investors expect the Fed to step in with QE3 sooner than later.  With interest rates close to their lows today, we will advise a locking bias on short term transactions.