February 5th, 2009 Morning Market Update

"Bonds are having another volatile morning on the heels of more bad news on the labor front. Initial Jobless Claims reached the highest level in 26 years. In addition, while Productivity in the 4th Quarter was better than expected, Output in the 4th Quarter declined by the largest amount in 26 years.
In other news, the Senate voted to include a $15,000 tax credit in the new stimulus plan in hopes of revitalizing the slumping housing market. The stimulus bill is still working its way through Congress after being voted on in the House last week, and its impact still remains to be seen.
Overall, Bonds have drifted significantly lower since peaking on January 9th. If tomorrow's Jobs Report is as bad--or worse--than expected, Bonds could rally on the negative economic news. Therefore, I recommend floating ahead of the Jobs Report, but I will let you know if we need to shift gears."

Brought to you by:
Leonard Winslow
Gateway Bank Mortgage
690 Berkmar Circle
Chrlottesville, Va 22901
(O) 434-220-3409 (F) 434-220-3429
(M) 434-760-2580 email leonardwinslow@gwfh.com
www.emortgageware.com/leonardwinslow