The Mortgage Update

Let’s get this party started, shall we? Treasuries declined in the early morning hours before a report economists predict will show U.S. employers increased hiring in June and jobless rates fell. These key economic indicators suggest the economy is recovering; adding speculation that the Fed will start to tapper QE as soon as September. Remember, this potential reduction, or tapering, accounts for most of the recent market volatility. There is an 800-lb gorilla in the room and its name is the Employment Situation Report…it arrived and it wasn't pretty for the bond market.