Initial Weekly Jobless Claims came in at 336K which was higher than estimated and the prior week was revised slightly higher. Still, the more closely watched four week moving average fell another 2,250.
News out of Jackson Hole has been very conflicting with one opinion of, “could get comfortable with some type of movement in September”. This would seem to support the concept of tapering in September. As a result, MBS sold off. The other side stating that the Fed had time to be “deliberate” in the timing and scope of a taper. This would seem to support the Fed tapering after September. As a result MBS rebounded back into positive territory.
Next up,
we have the San Francisco Fed President speaking, which is the district that
released their research that showed QE2 having a very minimal impact on the
economy.
The
biggest economic release today was the release of the New Home Sales Report,
which showed an increase of 2.1%.
Today’s
pricing is going to be completely driven by news out of Jackson Hole.
- Michael Corboy
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