June 08, 2011
New York Real Estate
After last week's volatility, the markets receive a bit of a reprieve - with no major reports due out until mid-week. Here are some reports to watch, followed by some news items that may impact Bonds and home loan rates in the days ahead:
The Fed's Beige Book will be released on Wednesday. The Beige Book contains anecdotal information on the current economic and business conditions. Although some people consider the Beige Book to be a lagging report, it can serve as a helpful indicator of the Fed's policy decisions. It reflects data from bank reports, as well as interviews with key business contacts, economists, market experts, and other sources. After the volatility and negative news last week, this report will be as important as ever.
The Jobless Claims report comes out Thursday. Last week, Initial Jobless Claims were within expectations, so it wasn't a horrible reading. That said, the disappointing Jobs Report demonstrates that employment is definitely still a concern, so the markets will be watching the Jobless Claims report closely this Thursday.
Also on Thursday, we'll see the Balance of Trade report, which focuses on exports and imports. Remember, a negative balance of trade - or a deficit - occurs when imports surpass exports. Rising deficits can be reflective of increased consumption, which can be a sign of a strengthening economy.
But don't let the slow week of economic reports fool you.
With just a few economic reports to digest and the earnings season over, the Bond markets will take their cue from how the Stocks markets move.
Soft economic data has put a dent in Stock prices in the past month, so investors may be leery to commit any new funds into the equity markets and could support Bonds. However, the Bond markets will have to contend with $66 Billion in Notes and Bonds to be offered by the Treasury - and the auctions could weigh on Bonds and home loan prices.
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