Locking Stance

Initial Jobless Claims were reported at 370,000 which is 25,000 lower than the previous week and below the 382,000 estimate.  Markets are all close to even at the moment with investors looking to tomorrow mornings monthly Jobs Report.  It’s clearly the Fiscal Cliff issue that is keeping investors paralyzed for now.   With more and more companies paying out dividends early, the private sector is preparing for a major shift from current tax rates…It seems to be a foregone conclusion that any deal will result in higher taxes for most, but certainly for the upper income earners.  mortgage bonds are flat as well, as have not been able to break above resistance.  The Jobs report might be the catalyst to do so, but the risk of floating at these levels is a bit high, so we will advise locking before tomorrow if the transaction pricing is available.