Danny Salas

Archive for September 10th, 2009

Chico, CA Interest Rates Market Report – Economic Influences – September 10, 2009

We've made it past the 200-Day Moving Average

Intial Jobless Claims Around Expectations

So, 550,000 new claims occured this week.  They expected 560,000, so it was better than expected, but still pretty terrible.  The number of continuing claims moved down to 6.09 Million people.  Moving down, you’d think, would be good…however, how many people are just losing their benefits because they’ve been receiving unemployment compensation for too long, and therefore, not eligible any more…I think a lot!

Treasury Note Auction

The verdict is in!  The Auctions went well, again.  AND, foreign appetite for our Treasuries were relatively favorable, as well!  The United States’ yields are a bit higher than the rest of the world, right now, so foreign investment fared well.  But, once other countries start to increase their yields, we’ll need to watch closely and see if that will effect our yields, and therefore interest rates, in the near or distant future. 

Where Yields Are

So, we’ve beaten the 200-Day Moving Average and that has become a nice level of support for interest rates.  Expect to see rates in the range of 4.75%* to 5.0%** if we can stay at current levels.  Going into Friday, things may change a little before the weekend, but the closer to October…rates should be around 4.75%…we’ll see…

*= APR 4.965%

**=APR 5.219%