November 1st, 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
9:55 AM I have been off the last couple of days but now I am back. The MBS has fallen below $103 and the price is about as low as it has been in the last quarter. We have a lot information coming out this week so keep an eye on the economic calender that will posted under the name of what is in Beek’s Brief case.
8:48 AM The ISM Manufacturing Index will be released at 10:00 a.m. ET.
8:43 AM MBS edge lower. However, the New York Fed will be purchasing up to $2.25B in Fannie/Freddie 3% 30-yr coupons this morning beginning at 11:15 a.m. ET.
8:34 AM CoreLogic reports that home prices, including distressed sales, rose 6.3% from September 2015 to September 2016, +1.1% from August to September.
8:24 AM As we said, S&P futures higher, but gains are modest.
8:24 AM U.S. dollar index 98.10, -0.31.
8:20 AM 10-yr T Note yield 1.84%.
8:20 AM WTI oil continues to edge lower on doubts of a production cut by OPEC, now at $46.84/barrel, down from $52 on October 19.
8:18 AM Fed Fund Futures show a 78% chance of a hike at the December 13-14 meeting.
8:16 AM There is little chance of a hike at this meeting, but the investing world will wait with bated breath for signals for a December hike to the short-term Fed Funds Rate.
8:14 AM Investors and traders eye the two-day Fed meeting kicking off on Capitol Hill later this morning with the monetary policy statement being released at 2:00 p.m. ET on Wednesday afternoon.
8:13 AM S&P futures higher on the China data.
8:12 AM Strong economic data out of China weighs on Bond prices as MBS open flat to slightly lower.