Today the Non-manufacturing ISM Report On Business was released. As usual, I don’t consider it the most important report, but it’s worth a mention. The index came in at 60, indicating expansion in the service sector. The employment index was slightly under 50, coming in at 49.8. Not great.

The 10 year note hit 4% today. This is not a positive event. When the 10 year rises, mortgage rates will follow. A few people have already declared the 30 year bull market for treasuries over. It had to happen eventually. I’d still be worried about another flight to safety. Wouldn’t it be frightening if treasuries were no longer the instrument of safety?

The new short sale program started today. This program will make it easier for those homeowners that want to rid themselves of their homes. To participate in the program, banks must agree not to pursue deficiency judgments against the short seller (that’s the bank trying to recover the difference between the sale price and what is owed on the mortgage). The program also provides some financial incentives for both the bank and the homeowner.