Tuesday October 11th 2022
Market Wrap - Mortgage Bonds continued to perform poorly today. The Bank of England (BOE) was buying their bonds and now decided to stop, and this eliminated a buyer from the market. There is some concern that they will become a seller soon. This uncertainty is not good for bonds or mortage rates.
Wednesday October the 12th
7:30 AM The Producer Price Index, which measures wholesale inflation, was reported for the month of September. The Headline PPI figure was up 0.4%, which was above expectations of 0.2%. On a year over year basis PPI decreased by 0.2% from 8.7% to 8.5%, which was higher than the 8.4% estimate,. Core PPI, which strips out food and energy prices, increased by 0.3%, which was in line with expectations. Year over year Core PPI remained flat at 7.2%, which was just below the 7.3% estimate.
Thursday October the 13th
7:30 AM Jobless Claims Initial Jobless Claims, which measures individuals filing for unemployment benefits for the first time, was reported at 228,000 claims for last week. This represents an increase of 9,000 from the previous revised report of 219,000 claims, and was above expectations of 225,000. Continuing Claims increased by 3,000 to 1.368 Million claims, which was greater than estimates of no change.
Consumer Price Index The Consumer Price Index (CPI), which measures inflation on the consumer level, was reported at 0.4% in September, which was above expectations of 0.2%, and decreased by 0.1% to 8.2% year over year, which was higher the 8.1% estimate. The Core CPI Rate, which strips out food and energy prices, increased by 0.6% for September, which was above expectations of 0.5%, and increased by 0.3% to 6.6% year over year, which was above the 6.5% estimate.
8:30 AM Stocks have started the day sharply lower. The Dow is -489.42 at 28,721.43 and the S&P 500 is -74.84 at 3,502.19. Mortgage Bonds are -116bp at 95.50. (Price lower yield HiNewsletter - 10/17/2022