WRAP: Not much action in MBS today as prices hovered near unchanged for most of the session being weighed down by a jump in wholesale prices in China, the fastest pace since 2011. In addition, this week's Treasury auctions also weighed on Bond prices. The 3.5% Fannie Mae 30-yr coupon closed near unchanged at 102.72. Stocks didn't see much action to either side of the market. The Dow closed at 19,855.53, near unchanged, the S&P 500 closed at 2,268.90, near unchanged, while the Nasdaq was up 20 points to end at 5,551.81. WTI oil closed at $50.78/barrel, -$1.18. 10-yr T Note yield 2.38%. There are no economic reports due for relase tomorrow.
What Is Going On With Interest Rates? #wigowir
Below is the news when it happened and the market’s reaction. For a full view of the day start at the bottom and work your way up. If want to know what just happened start at the top. All Times are Eastern Standard Time. When the price of Mortgage Backed Securities (MBS) goes down rates go up, and when the price goes up rates come down. Remember in the bond market Bad News is Good News and Good News is Bad news.
3:18 PM Stock and Bond prices hover near unchanged as they search for next catalyst to move the markets.
2:01 PM The Dow sinks into negative territory.
1:08 PM The $24B 3-yr Note auction garners a "B+" rating.
12:33 PM Despite the rally in Stocks, MBS trade near unchanged.
10:57 AM Stocks now pushing into positive territory.
10:27 AM A downgrade from Citigroup on Goldman Sachs weighs on Stock prices as the investment bank's price heads lower.
10:11 AM The number of job openings was little changed at 5.5 million on the last business day of November, the U.S. Bureau of Labor Statistics reported today in its Job Opening and Labor Turnover Survey (JOLTS) report.
10:09 AM The Fannie Mae Home Purchase Sentiment Index (HPSI) decreased in December for the fifth consecutive month, slipping 0.5 points to 80.7. The HPSI reflects consumers’ current views and forward-looking expectations of housing market conditions and complements existing data sources to inform housing-related analysis and decision making.
9:41 AM Stocks open lower, but the losses are minimal, for now.
8:44 AM WTI oil $52.05/barrel, near unchanged.
8:43 AM U.S. dollar index 102.01, +0.10.
8:34 AM CoreLogic reports 26,000 completed foreclosures in November, down 25.9% from a year ago, down 2.4% from October.
8:32 AM S&P futures near unchanged as investors gear up for earnings season.
8:28 AM The Treasury will sell $24B 3-year Notes today, results at 1:00 p.m. ET.
8:27 AM No Fed speakers or key economic data are scheduled for today.
8:24 AM 10-yr T Note yield 2.38% from yesterday's 2.37%.
8:17 AM The National Federation of Independent Business (NFIB) reports that it's Small Business Optimism Index surged in December by 7.4 points to 105.8, the highest since the end of 2004.http://www.nfib.com/surveys/small-business-economic-trends/ The NFIB Research Foundation has collected Small Business Economic Trends data with quarterly surveys since the 4th quarter of 1973 and monthly surveys since 1986. Survey respondents are drawn from NFIB’s membership. The report is released on the second Tuesday of each month. This survey was conducted in November 2016.
8:15 AM MBS open lower, but the losses are modest after China reported its CPI a bit below expectations, while year-over-year PPI exceeded expectations.
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