July 19th, 2016

Tue, Jul 19 5:00 PM
End of day comments: MBS ended today's session higher and tighter as Fed support, and a pause in the Stock rally contributed to the higher prices. 

The Bond was able to close above support at the 25-day Moving Average (103.45), a good sign. Mortgage Bonds edged higher today, but traded in a tight range for most of the session aided in part by a pause in the Stock rally. Mixed earnings and housing data along with Fed buying also helped to support Mortgage Bond prices. The 3% Fannie Mae 30-yr coupon gained 16bp to end at 103.69, the high for the session. Stocks ended mixed, but the Dow closed at a fresh closing high of 18,559.01, +25.96 points. The S&P lost 3.11 points to 2,163.78, while the Nasdaq closed lower by 19.41 points to end at 5,036.37. WTI oil was last seen at $44.56, -$0.68. The 10-yr T Note yield ended at 1.55%. There are no major economic reports due for release tomorrow.

Tue, Jul 19 4:08 PM - Microsoft earnings beat on both earnings-per-share and revenues.
Tue, Jul 19 4:00 PM - The Dow closes at a fresh record high of 18,559.
Tue, Jul 19 3:43 PM - The S&P 500 edges lower amid mixed earnings after market's record highs.
Tue, Jul 19 1:33 PM - MBS prepayments: speeds seen slower in July and then surging in August.
Tue, Jul 19 1:24 PM - Not much movement in MBS as range bound trading is the name of the game today.
Tue, Jul 19 12:55 PM - At midday, MBS holding modest gains, Stocks slightly lower. 10-yr T Note yield 1.54%.
Tue, Jul 19 11:47 AM - The New York Fed bought $2.52 billion in Fannie/Freddie 30-yr 3s and 3.5s during the past 45 minutes.
Tue, Jul 19 10:56 AM - MBS push to session highs.
Tue, Jul 19 10:53 AM - Fed Fund Futures show just a 12% chance of a hike to the Fed Funds Rate at next week's FOMC meeting.
Tue, Jul 19 10:26 AM - The Dow edges into positive territory. S&P, Nasdaq slightly lower.
Tue, Jul 19 10:09 AM - The IMF reports that U.S. economic growth is expected to expand 2.2% this year, down 0.2 percentage points from the April estimate.
Tue, Jul 19 9:36 AM - Stocks lower soon after the open.

6 month Chart above posted at 9:17 am et -  When the price goes up yields come down.  The chart shows that prices are off the highs reached a week ago. We are still at historically low rates.  

Tue, Jul 19 8:47 AM - Not much reaction in the Bond markets to the somewhat push-pull housing data.
Tue, Jul 19 8:42 AM - The New York Fed will be purchasing up to $2.5 billion in Fannie/Freddie 30-yr 3s and 3.5s beginning at 11:15 a.m. ET.
Tue, Jul 19 8:38 AM - May Housing Starts revised lower to 1.135 million from 1.164 million.
Tue, Jul 19 8:37 AM - Building Permits rise 1.5% from May to an annual rate of 1.153 million vs 1.150 million expected.
Tue, Jul 19 8:34 AM - June Housing Starts rise 4.89% from May to an annual rate of 1.189 million units vs the 1.165 million expected.
Tue, Jul 19 8:27 AM - WTI oil edged higher by $0.18 to $45.42/barrel.
Tue, Jul 19 8:25 AM - U.S. dollar index 96.99, +0.40.
Tue, Jul 19 8:19 AM - Netflix shares lower by 12% after it added fewer-than-expected new customers in the latest quarter.
Tue, Jul 19 8:17 AM - June Housing Starts and Building Permits will be released at 8:30.
Tue, Jul 19 8:15 AM - Mortgage Bond prices open higher. 10-yr yield lower to 1.55% from yesterday's 1.58%.
Tue, Jul 19 8:14 AM - S&P futures lower following the decline in global Stocks due to an abysmal German business report, which reflected deep concern over the Brexit vote.
Tue, Jul 19 8:14 AM - However, futures are off their lows after Goldman Sachs and JNJ reported better-than-expected earnings.


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