February 17th, 2017
Answer to the question in the subject line: Yes! We closed above the first level of resistance (R1) at the 50-day Moving Average (102.13). We are hopefully R1 will become S1 next, and make it a buy signal rather than a sell signal.
At the close of trading:
3.5% Fannie Mae 30-yr coupon up 16 bp at a price of 102.28 down 3 bp when rates were set today at 10:00 am Open 102.28 High 102.38 Low 102.25 See Chart Below
Commentary at the close: MBS edged higher in today's quiet trading session as the Stock rally pauses or may be topping out here in the short term There were no economic reports released today. The Fannie Mae 30-yr 3.5% coupon closed at 102.25, +12bp. Stocks hugged the flat line at the close. The Dow closed at 20,624.05, the S&P 500 closed at 2,351.16, while the Nasdaq was up 23.67 points to end at 5,838.57. WTI oil closed near unchanged at $53.40/barrel. 10-yr T Note yield 2.42%. Next week's economic calendar is on the light side. The U.S. markets are closed on Monday in observance of Presidents Day. We will not be open, but we will be available on the phone at 205-266-5669. Let us know if you have any questions or if we can help in any way
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.
4:13 PM Stocks squeak out minor gains headed into the long weekend.
1:20 PM Just past midday, MBS holding modest gains and off the session highs. Stocks lower. 10-yr T Note yield edges higher to 2.42%.
12:33 PM 3.5% Fannie Mae 30-yr coupon up 16 bp at a price of 102.28 down 3 bp when rates were set today at 10:00 am Open 101.28 High 102.34 Low 102.25 See chart below. On it you will see that we have traded all day above R1 which is 50 day moving average. Closing above this number may change the 50 day moving average from a selling signal to a buying signal.
8:47 AM 10-yr T Note yield 2.40% from yesterday's close of 2.45%.
8:38 AM All U.S. capital markets will be closed on Monday in observance of Presidents Day.
8:30 AM The Fannie Mae 30-yr 3.5% coupon opens above resistance one (R1) at the 50-day Moving Average (102.13).
8:29 AM There are no economic reports due for release today.
8:23 AM WTI oil at $53.13/barrel, -$0.23.
8:22 AM U.S. dollar index 100.61, +0.18.
8:21 AM Stock investors are pausing and taking some chips off the table after the Dow, S&P and Nasdaq hit record highs.
8:19 AM Mortgage Bond and Treasury prices are trading higher following through on their Thursday rally as S&P futures are pointing towards a lower open.
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