FNMA 4.5% bond lost just 22 basis points after being down much lower for much of the day. Rates steady in the 5-5.25% range on 30 year fixed rate money.
Dow was UP about 2 points.
Feds released the notes from their December meeting and investors took that in. Interesting note from them: there are members of the committee who feel it important to extend the purchase program. (Purchase of Mortgage Backed Securities). This news was good for bonds today to help recover some of the losses from early in the session.
The Institute of Supply Management or ISM released their "Services Index" today. ISM Services index comes from boiling down about 370 "service professionals" in industries such as finance that are "service" related vs. Manufacturing related. The number was GOOD today coming in at 50.1 vs. the 48.7 reported last month.
The ADP National Employment Report actually showed 84,000 jobs lost in the private sector vs. the 75,000 that was expected. Contrast that with -148,000 reported last time though. Remember: it is more important to note the actual vs. expected to anticipate the immediate reaction in the markets if there is one at all.
Cheers,
Chad
