December 19th, 2016
Commentary: Looks like a bit of a bounce off $101 on the chart below. Stocks have been on a pretty strong run recently and bonds have taken a pretty big hit. Dow 20,000 is pretty strong psychological round number. Is it likely once we hit 20,000 investors will start selling their stocks and move their money into bonds? This seems logical to me, what about you?
WRAP: MBS were able to rally today in the face of some horrific geo-political events. The Russian ambassador to Turkey, Andrey Karlov, was shot and killed in Ankara, while a truck plowed into a crowded Christmas market in Berlin killing nine people and injuring 50. The Bond gained 41bp to end the session at 101.47. Stocks ended higher, but the gains were limited by the news headlines. The Dow rose 39.65 points to 19,883.06, the S&P 500 was up 4.46 points to 2,262.53, while the Nasdaq was higher by 20.28 points to end at 5,457.44. WTI oil closed at $52.12, +0.22. 10-yr T Note yield 2.54%. There are economic reports due for release tomorrow.
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.
3:28 PM Now reported 9 dead at the Berlin Christmas Market after a truck crashed into the crowd.
3:07 PM A truck plows into crowd at Berlin Christmas market, one dead. No details yet.
3:02 PM Markit's U.S. Services PMI unexpectedly declined in December.
2:59 PM The Fannie Mae 30-yr 3.5% coupon trades in a narrow range for the past few hours.
1:39 PM Fed Chair Yellen says the labor markets is quite strong, the strongest in a decade. In addition, she says wage growth is picking up. MBS prices take a hit, though still in positive territory.
1:12 PM Russian ambassador to Turkey, Andrey Karlov, was shot dead in Ankara.
11:30 AM MBS push to session highs.
10:37 AM Holiday market schedule update:Bond markets close early at 2:00 p.m. ET Friday, December 23. Stocks are open for a normal session.On December 26, all markets are closed in observance of Christmas. On December 30, the Bond markets close early at 2:00 p.m. ET. Stocks are open for a regular session. On January 2, 2017, all markets are closed in observance of the New Year's Day holiday.
9:51 AM The S&P pushes higher into positive territory.
9:32 AM The S&P opens slightly higher.
8:24 AM U.S. dollar index 103.07, +0.12, the strongest level against the euro since 2003.
8:23 AM WTI oil at $51.73/barrel, -$0.18.
8:22 AM There are no economic reports due for release today.
8:20 AM The S&P 500 has risen nearly 6% since the presidential election on bets that the new administration could put forth deregulations and infrastructure spending that could boost the economy.
8:16 AM The Dow posted its 6th straight week of gains on Friday, its longest streak in a year. The blue-chip index is less than 1% away from the 20,000 mark.
8:15 AM Fed Chair Yellen will be speaking today on "The State of the Job Market" at 1:30 p.m. ET at the University of Baltimore.
8:11 AM 10-yr T Note yield 2.56% from Friday's close of 2.59%.
8:09 AM MBS open higher, while S&P futures are near unchanged.
8:03 AM MBS look to open higher to begin the last full week of trading in 2016.
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