Good Thursday A.M.,

Yesterday’s Fed Minutes were released, and as I read them felt the Fed was committing to a low rate environment for the foreseeable future. The Fed did say they will not exhibit yield control, but I think that is semantics as their actions already do so. Markets were a little rattled by that yesterday, I don’t know why, but they seem to be on the right side of it this a.m. Unemployment claims surged over 20% from expectations; that is not a good thing. Equities are up but the air is super-thin in here.

Giving everyone a break today from my wordiness earlier in the week with a brief commentary from Dan Rawitch this a.m.

Bonds opened very strong thanks to a terrible Jobless claims report. We jumped back above 1 million people filing for unemployment. This broke a 3-4 month trend of jobless claims dropping. After a strong opening, we have been giving back a large amount of the mornings gains but we are still well above yesterdays close and back on the correct side of the trendline. The chart looks much better than it did at the close, yesterday. I would say as long as the MBS can hold today’s gains, we can continue to float. Just be alert because the market is very reactionary after yesterday’s Fed minutes release. I read the minutes and found them to be bullish for bonds and bearish for stocks. I believe the bond market was wrong yesterday after selling off and today they figured out what I already believed to be true.

Please remain safe and stay healthy, make today great!