12 Jul Stocks down, Bonds high
Stocks are down and bonds are higher after digesting the Fed minutes from yesterday’s release. It showed that a few members were in favor of more easing. However, in the end there was no agreement to do so. Today’s Initial Jobless Claims came in lower than expected at 350,000 versus the estimate of 375,000, but that was not enough to keep stocks out of the negative so far. Other central banks around the world continue to lower rates, which is adding to the global recession fears. mortgagebonds are near the all-time highs which keeps rates at the all time lows. We will suggest a locking bias at theses levels.