Bonds and especially oil are trading wildly today as markets sort through mixed data. Both are generally up as the Libya situation unfolds, and when bond prices rise on a rally, rates drop. As for oil, was as high as $103 today and now more like $97. Below are the data releases from today: jobs data was better than expected, durable goods orders (a measure of manufacturing activity) was worse than expected, and also new home sales were worse than expected. Side-note on the image shown: it’s from Al Jazeera’s daily blog on Libya.
Also today we’ve had 3 other data points: (1) Jobless Claims dropped by 22k, from 413,000 down to 391,000. Continuing Claims also dropped. (2) Durable Goods were +2.7% in January, versus a drop of .4% in December. (3) January sales of new single family houses were down 12.6% from previous month and down 18.6% from January 2010, with an average sales price of $260,300. The seasonally adjusted estimate of new houses for sale at the end of January was 188,000. This represents a supply of 7.9 months at the current sales rate.