Non Farm Payrolls Friday coming Tomorrow 8:30 AM ET

December 1st, 2016

Today's Agenda:

Date & Time of ReportReportForEstimateActualPriorImpact
12/1/16 8:30 AMJobless Claims (initial)26-Nov253k268k251kModerate
12/1/16 10:00 AMISM IndexNov52.153.251.90High

 

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.

1:24 PM The 3.5% Fannie Mae 30-yr coupon able to trade back up to support 2 (S2, 102.22), now at 102.22.

1:07 PM WTI oil continues to gush higher now at $51.61/barrel, +$2.18.

1:05 PM At midday, MBS able to bounce off lows, but remain well into negative territory.

12:29 PM MBS hit session lows. Alert to Lock!

11:03 AM The Dow is up 5% since election day, Nasdaq and S&P +3%.

11:01 AM The S&P and Nasdaq slip into negative territory, Dow positive.

10:58 AM MBS able to bounce off lows.

 
10:29 AM The price now on the 3.5% MBS is at $102.09 which is below $102.12 or the lowest price July 13, 2015. 
 
10:22 AM On the chart below you can see that we are sitting on $102.22 which is S2 or the second level of support. 
 
 
 

10:04 AM Freddie Mac reports that the 30-yr fixed conventional rate ($417K or less) rose to 4.08% this week, the highest in 2016 with 0.5 in points and fees.

10:03 AM MBS look fragile at current levels. We are watching support at 102.12 for the 3.5% Fannie Mae 30-yr coupon, currently just above that level.

10:02 AM The November ISM Index 53.2 vs 52.1 expected.

9:41 AM The S&P trades near unchanged soon after the open.

8:33 AM The New York Fed will provide early support purchasing up to $2.5B in Fannie/Freddie 30-yr 3s and 3.5s beginning at 9:00 a.m. ET.

8:30 AM Weekly Initial Jobless Claims up 17K to 268K vs the 253K expected.

8:23 AM Talk of privatizing Fannie Mae and Freddie Mac sends shares of the GSEs soaring to 2-year highs.

8:22 AM The eurozone's unemployment rate fell to 9.8% in October, its lowest level since July 2009 ... another factor weighing on Bond prices. .

8:13 AM Economic data this morning ... Weekly Initial Jobless Claims (8:30), ISM Index (10).

8:04 AM Challenger job cuts fell to 26,936 in November, the second lowest since July 2000 and the fewest for any November since 1990.

8:01 AM MBS look to open lower.

8:00 AM S&P futures kick off the last month of 2016 slightly lower after the big post-election rally.

8:00 AM U.S. dollar index 101.28, -0.24.

7:56 AM The 10-yr T Note yield higher at 2.41% from the 2.36% seen at yesterday's close.

7:56 AM WTI oil +$0.74 to $50.18/barrel.

7:54 AM Manufacturing data from China, Japan, Italy and Switzerland all beat expectations in November and is driving Treasury prices lower, yields higher.

 

Johnmarbury.com has attempted to verify the information contained on this post.  However any aspect of such may change without notice.  Johnmarbury.com does not provide investment advice and does not represent that any of the information or related analysis is accurate or complete at any time. On October 5th we started posting our rates and leaving them on the site for you to refer back to. This will allow  you see where actual rates have been along with the news that caused the fluctuations on the rate sheet.  I ask that you forgive my spelling and grammatical mistakes. This is due writing skills that are lacking and the need to communicate quickly.  Most of the information posted on this blog along with the charts and indexes are available all during the day to the subscrbers of www.themortgagemarketguide.com  The cost of subscription is very reasonable.

 

 

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