January 30th, 2017
Commentary at the close MBS closed near unchanged on somewhat tame inflation along with better-then-expected Pending Home Sales for December.
The 3.5% Fannie Mae 30-yr coupon down 3bp to close at a price of 102.00 down 6bp when rates were set today at 10:00 am. The bond Opened at 102.00, The High 102.19 Low 101.94. Do you think that it is a coincidence that the bond opened and closed at 102? We do not. This number like Dow 20,000 does not have any importance except the traders cannot keep their eyes off numbers with a lot of Zeros. We are hoping that both of these numbers are a foundation and not a ceiling.
Wrap at the close: Stocks closed lower as investors see the Trump rally easing. The Dow fell by 122.65 points to 19,971.13, the S&P 500 was down 13.79 points to 2,280.90, while the Nasdaq fell 47.07 points to end at 5,613.71. WTI oil was last seen at $52.66/barrel, -$0.51. 10-yr yield 2.49%. Tomorrow's economic data includes the Employment Cost Index, S&P Case Shiller 20-city Home Price Index, Chicago PMI and Consumer Confidence.
Dow drops triple digits amid concerns over Trump's immigration policies
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.
2:32 PM MBS now near unchanged.
12:25 PM Stocks cut some losses though still well underwater. MBS at session highs.
10:55 AM MBS hit session highs as Stocks continue to hit fresh session lows.
10:51 AM Stock losses continue to accelerate as investors take the time to secure some profits.
10:38 AM Dow -190 points.
10:28 AM President Trump signs executive order aimed at cutting regulations.
10:10 AM Dow -143 points to 19,951.
10:10 AM The national average price for a regular gallon of gasoline is at $2.27.
10:02 AM December Pending Home Sales +1.6% vs the +1.3% expected and up from the -2.5% in November.
9:42 AM The Dow slips below 20,000.
9:40 AM Stocks open lower as the Dow clings to 20,000.
8:44 AM MBS edge into positive territory after the somewhat tame inflation data from the Core PCE, mixed Personal Income & Spending numbers.
8:42 AM The December Core PCE +0.1% vs 0.2% in November, year-over-year +1.7% up from 1.6% in November.
8:34 AM December Personal Income +0.3% vs +0.4%, Personal Spending 0.5% vs 0.4%.
8:28 AM The rest of the week Wall Street will see data on manufacturing, housing, consumer confidence, and the granddaddy of all reports, the monthly Jobs Report, January. This includes Non-farm Payrolls, Unemployment Rate and Hourly Earnings.
8:27 AM There is almost no chance of a hike to the short-term Fed Funds Rate at this Fed meeting.
8:24 AM The 2-day Fed meeting kicks off tomorrow (Tuesday) and ends on Wednesday with the 2:00 p.m. ET release of the monetary policy statement.
8:23 AM WTI oil $53.12, near unchanged.
8:23 AM Big week for economic data ... today Personal Income & Spending, Core PCE (8:30) and Pending Home Sales (10).
8:22 AM 10-yr yield 2.49%.
8:09 AM MBS open slightly lower as the dollar index jumps +0.47 to 101.0.
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