January 11th, 2017
Commentary at the close: MBS were buoyed by strong demand from retail and the Fed who will be back in the market tomorrow with another big buying appetite. Spreads tightened vs Treasuries.
WRAP: Mortgage Bonds were able to squeak out modest gains today as Stocks flip-flopped before closing well into positive territory. There were no economic reports released today. The 3.5% Fannie Mae 30-yr coupon gained 9bp to close at 102.81. Stocks closed higher shrugging off president-elect Trump's press conference after Mr. Trump talked of competitive drug pricing and to bring back pharmaceutical operations to the U.S. The Dow gained 98.75 points to 19,954.28, the S&P 500 was up 6.42 points to 2,275.32, while the Nasdaq closed at a fresh record high of 5,563.65, +11.83 points. WTI oil closed at $52.25/barrel, +$1.43. Tomorrow's economic data is limited to Weekly Initial Jobless Claims.
Commentary 11:27 AM Not much movement in MBS's. Nothing going on at this time.
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.
3:42 PM Stocks move back into positive territory.
1:46 PM 10-yr T Note yield declines to 2.34% after the auction results were released.
1:45 PM The $20B 10-yr Note offering garners an "A" rating. MBS near session highs.
11:29 AM The New York Fed buying in MBS pushes prices higher as of this post.
11:00 AM MBS continue to trade near unchanged levels.
9:33 AM The S&P 500 opens near unchanged. MBS pushing lower.
8:56 AM The New York Fed will purchase up to $2.35B in Fannie/Freddie 30-yr 3.5% and 4% coupons beginning at 11:15 a.m. ET.
8:26 AM The MBA says mortgage apps recovering from year-end slowing.
8:19 AM U.S. dollar index 102.45, +0.45.
8:11 AM There are no economic reports due for release today.
8:09 AM WTI oil $51.09/barrel, +$0.28.
8:08 AM The Treasury will sell $20B 10-yr Notes today, results at 1:00 p.m. ET and comes after yesterday's solid demand for the 3-year offering.
8:07 AM 10-yr T Note yield 2.37%, unchanged.
8:06 AM MBS open near unchanged. S&P futures slightly lower.
8:00 AM The MBAs refi index +4.4%, purchase index +6.1%.
7:58 AM The average 30-yr fixed conventional mortgage rate edged lower to 4.32% from 4.39%.
7:57 AM The MBA reports that its Market Composite Index, a measure of total mortgage loan application volume, rose 5.8% in the latest week.
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