Bond Yields Move Higher After Jobless Claims Fall

Jobless claims fall by 9,000 for the week, and came in at 365k, which is below expectations. These levels are still below those normally associated with recessions, and the 10-year yield is spiking higher as a result.

The 10-yr yield is up a full 12 bps to 3.95%. If it closes up here, it would be the highest close so far this year. I continue to think that the 10-year yield reflects that the economy is not in recession. Additionally, ace economist Ed Hyman was on CNBC earlier this week and said that he doesn't see the U.S. in recession either.

The brokers are weak this morning after more downgrades from analyst Dick Bove, as well as news that UBS plans to raise some $15 billion in capital.

Asian markets were mostly lower overnight; the dollar is higher vs. the Yen and Euro today; and oil is lower after touching $135. It is currently trading near $132. The world seems micro-focused on oil right now, and I think that the recent price rise is both unsustainable and entering bubble territory. I will try to post more thoughts on this later.