November 25th, 2016
Commentary: MBS traded down near support at multi-year price lows. For more info see chart below.
WRAP: Stocks posted a 3-straight week win streak post election at the close of trading in today's abbreviated session. In the same time, MBS have fallen off a cliff, while mortgage rates hit 2016 highs. The 3.0% Fannie Mae 30-yr coupon fell during the session but managed to recoup most of the losses by the early close at 102.47, -6bp. The Dow gained 68.96 points to 19,152.14, the S&P rose 8.63 points to 2,213.35, while the Nasdaq finished the week at 5,398.92 +18.24 points. All record highs. WTI oil close was last seen at $45.96, -$2.00. 10-yr yield 2.35%. Next week's economic calendar is chockful of a broad array of reports culminating with Friday's Non-farm Payrolls for November. Check out our Financial Calendar at: http://www.johnmarbury.com/blog/7833/this-weeks-economic-calendar-starting-112816
Have a great weekend!
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.
10:35 AM MBS trade just below unchanged in this quiet session. Dow +54 points, S&P + 5.42.
8:16 AM WTI oil $47.44/barrel, -$0.53.
8:16 AM U.S. dollar index 101.53, -0.23.
8:15 AM 10-yr T Note yield 2.37%.
8:11 AM S&P futures modestly higher as retailers take front and center on the Black Friday.
8:10 AM Today is typically one of the lowest trading volume days of the year.
8:08 AM MBS open modestly lower in the abbreviated session and in the absence of any economic data. The Bond markets will close at 2:00 p.m. ET.