October 25th, 2016
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
Coming out at 10 AM New Home Sales for September. The market is estimating 610,000 after August’s New Home Sales of 609,000
End of the day
MBS traded in a narrow range for most of the session ending unchanged with support seen from lower Stock prices and Fed buying. A slide in October Consumer Confidence was unable to lift MBS prices into positive territory at closing time. The 3% Fannie Mae 30-yr coupon closed at 103.28, unchanged. Stocks fell on mixed earnings, which gave investors the chance to take some profits as the major indices hover just below all-time highs. The Dow lost 53.76 to 18,169.27, the Nasdaq fell 26.42 points to 5,283.39, while the S&P 500 was down 8.17 points to end at 2,143.16. WTI oil closed at $49.96/barrel, -$0.56. 10-yr T Note yield 1.75%.
Tue, Oct 25 4:02 PM Stocks close lower on mixed earnings, investor profit taking.
2:15 PM The Office of the Comptroller of the Currency has sent formal letters to large and regional banks seeking information about sales practices and incentive-compensation structures following the Wells Fargo & Co. scandal, reports the Wall Street Journal.
2:14 PM MBS near unchanged, S&P lower. 10-yr yield 1.76%.
1:14 PM The $26B 2-yr Note auction garners a "C-" rating on weak demand.
The Bond markets await the 1:00 p.m. ET release of the $26B 2-yr Note auction results.
ECB President Draghi said this morning that policymakers would certainly prefer not to have to keep interest rates at such low levels for an excessively long time.
11:54 AM Stocks decline as earnings from some big names disappoint.
9:33 AM Stocks open modestly lower.
9:04 AM The August FHFA Housing Price Index +6.4% annually. There are no estimates for this report.
9:01 AM August Case-Shiller 20-city Index +5.1% annually, inline.
8:56 AM The Treasury will sell $26B 2-yr Notes today, results at 1:00 p.m. ET.
8:49 AM A Black Knight report shows only 1% of all mortgages in active foreclosure, the lowest point in the last nine years.
8:30 AM Fed's Bullard (voter) says low rates will likely be the norm for the next two to three years.
8:29 AM U.S. dollar index 98.81, +0.05.
8:28 AM Apple will report its quarterly earnings after the close of trading today.
8:27 AM Atlanta Fed President Lockhart (non-voter) will speak at 1:30 ET.
8:25 AM The August Case-Shiller 20-city Index will be released at 9:00 a.m., Consumer Confidence at 10.00.
8:23 AM 10-yr T Note yield 1.76%.
8:23 AM WTI oil $50.45/barrel, near unchanged.
8:20 AM Fed's Evans says he sees three rate hikes by the end of 2017. In the same speech, Evans said the Fed may need to keep interest rates lower for longer to meet the 2% inflation target. Mr. Evans is not a voting member in 2016.
8:13 AM Fed Fund Futures show a 71% chance of a hike to the benchmark short-term Fed Funds Rate in December.
8:12 AM Fed's Williams says that December may be an ideal time to raise rates.
8:09 AM MBS open flat to slightly lower after better-than-expected economic data from abroad.