January 9th, 2017
WRAP: Not much action in the MBS markets today as prices opened higher, but didn't have much movement during the session. There were no economic reports due for release today. The 3.5% Fannie Mae 30-yr coupon closed at 102.69, +19bp and below stiff resistance two (R2) at the 50-day Moving Average (102.94). Dow made it close to 20,000 on Friday and hit 19,999.63 before retreating down 64.5, and today down 76.42 to close at 19887.38. As the Dow gets closer to a number that has lots of ZEROS sellers start to come out. This may be the reason that MBS's are currently marching higher. Meanwhile, the S&P closed lower, while biotech and Apple led the Nasdaq to a record high close. The S&P 500 lost 8.07 points to 2,268.91, while the Nasdaq was up 10.76 points to end at 5,331.81. WTI oil closed at $51.96, -$2.03. 10-yr T Note yield 2.36%. There are no major economic reports due for release tomorrow. The Treasury will sell $24B 3-yr Notes, results at 1:00 p.m. ET.
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.
2:04 PM The Mortgage Backed Security market is open ... just no movement as they hold opening gains.
1:28 PM Just past midday, MBS trading modestly higher in listless trading. Stocks lower. 10-yr yield 2.37%.
11:43 AM MBS trade in a tight range for the past hour holding gains.
11:00 AM Stocks cut half their losses. MBS at session lows.
10:43 AM The Limited shut down all of its stores and laid off 4,000 workers this past weekend.
9:54 AM The New York Fed will be purchasing up to $2.35B in Fannie/Freddie 30-yr 3.5s and 4s later this morning beginning at 11:15 a.m. ET.
9:48 AM U.S. Navy fires warning shots at Iranian vessels after they closed in at a high rate of speed near the Strait of Hormuz, reports Reuters.
9:34 AM The national average price for a regular gallon of gasoline is at $2.39, up from $2.19 a month ago and up from $1.97 a year ago.
9:33 AM Stocks open lower as the Dow inches further below the 20K mark.
8:20 AM U.S. dollar index 102.43, +0.22.
8:20 AM WTI oil -$1.08 to $52.90/barrel.
8:18 AM This week, the Treasury will sell $24B 3-yr Notes on Tuesday, $20B 10-yr Notes on Wednesday and $12B 30-yr Bonds on Thursday.
8:18 AM There are no economic reports due for release today and the first data point will come on Thursday with Weekly Initial Jobless Claims. Friday brings PPI, Retail Sales and Consumer Sentiment.
8:13 AM The 10-yr T Note yield at 2.39% from the 2.41% close on Friday.
8:10 AM The Dow Jones Industrial Average came within a whisker away from the 20K mark on Friday before closing below that level.
8:08 AM Bond prices edging higher to begin the first full week of trading in 2017 as S&P futures are slightly lower after closing at record levels on Friday.
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