December 30th, 2016
Commentary: Bonds wrap up this holiday shortened trading week with their own version of a Santa Claus rally. Next week and year will let us know if this rally will continue to have teeth or will it fade upon new money entering the market and full trading desks. As you can see on the 10 year treasury chart above that the yield on this instrument peaked earlier this month at 2.5990%. Since this peak the yield has now dropped to 2.446%. This is much higher than the low that was hit in July at 1.3579%. The yield began the year at 2.2943%.
Wrap: The Bond markets wrapped up 2016 early today with the FNMA 30-year 3.5% coupon holding on to gains from a light volume week. Up 19 bps, the coupon closed at 102.38. Stocks are doing a full day of trading. At 2 p.m. ET, all indexes were posting declines, with the Dow down 22.59 bps, the NASDAQ down 43.14, and the S&P down 6.75 bps. All markets are closed Monday, January 2, 2017 in observance of New Year’s.0/16
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.
11:18 AM USD LIBOR 1-month .77%, 3-month .99%, 6-month 1.31%, 12-month 1.68%.
10:32 AM U.S. dollar index 102.09 -0.62
9:57 AM 10-yr German Bund yield .20%.
9:48 AM Chicago PMI (December) 54.6 vs. 57.6 (November)
8:58 AM WTI oil at $53.60/barrel down 17 cents.
8:50 AM 10-yr T Note yield at 2.48%.
8:40 AM Chicago PMI to be released at 9:45am ET.
8:16 AM S&P futures open 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.