February 13th, 2017
MBS opened the week modestly tighter on spread vs Treasuries and lower in price as Stocks rallied and ahead of Tuesday's semi-annual testimony from Fed Chair Yellen on Capitol Hill.
At the close and 3:38 PM 3.5% Fannie Mae 30-yr coupon down 12 bp at a price of 102.19 Flat when rates were set today at 10:00 am Open 102.16 High 102.22 Low 102.16 support one (S1) at the 50-day Moving Average (102.17) See chart below
The Trump rally marched on today with the major indices closing at fresh record highs. The Dow gained 142.79 points to 20,412.16, the S&P 500 was up 12.15 points to 2,328.25, while the Nasdaq gained 29.82 points to end the bullish session at 5,763.95. Shares of Apple (AAPL, $133.29, +$1.17) closed at all-time high. WTI closed down by $0.93 to end at $52.93/barrel. The 10-yr T Note yield closed at 2.43%. The January Producer Price Index will be released tomorrow
Along with Yellen testifying the following is on tomorrow's agenda.
|Tuesday, February 14, 2017||Report||For||Estimate||Actual||Prior||Impact|
|8:30 AM||Core Producer Price Index (PPI)||Jan||0.20%||0.30%||Moderate|
|8:30 AM||Producer Price Index (PPI)||Jan||0.30%||0.20%||Moderate|
3:38 PM 3.5% Fannie Mae 30-yr coupon down 12 bp at a price of 102.19 Flat when rates were set today at 10:00 am Open 102.16 High 102.22 Low 102.16
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.
3:55 PM Stocks set to close at record highs.
3:31 PM The S&P 500 Stock Index hits the $20 trillion market cap for the first time ever today as the major indexes hit fresh record intraday highs
2:24 PM Home loans seriously underwater hit new lows, decreased by 1 million in the past year.
1:54 PM Dow +160 points.
12:52 PM At midday, MBS modestly lower, Stocks holding solid gains. 10-yr yield 2.43%.
9:30 AM The Dow, Nasdaq and S&P open at fresh record highs.
9:08 AM U.S. dollar index 100.91, +0.11.
9:07 AM WTI oil $53.16/barrel, -$0.72.
9:04 AM Fed Chair Yellen is set to testify in front of the Senate Banking Committee on Tuesday and the House Financial Services Committee on Wednesday.
Janet Yellen is facing a whole new world, and it starts Tuesday
" he testified against his own commander"
"the bleak lines testify to inner torment"
8:55 AM 10-yr T Note yield 2.44%.
8:55 AM There are no economic reports due for release today but the rest of the week brings PPI, CPI, Retail Sales, housing and manufacturing.
8:50 AM MBS open lower on support as S&P futures are higher as the Dow, S&P, and Nasdaq look to extend record run as "Trump trade" rekindles
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