February 21st, 2017
The Fannie Mae 30-yr 3.5% coupon closes just above resistance one (R1) at the 50-day Moving Average (102.12).
Commentary at the close: MBS were able to bounce off the session lows and traded in a narrow range for most of the afternoon session after the solid demand from the 2-yr Note offering. There were no economic reports released today. The Fannie Mae 30-yr coupon closed at 102.16, -9bp. Stocks continued to rally as the major indices closed at record levels boosted today by strong retail earnings reports. The Dow gained 118.95 points to 20,743.00, the S&P was up 14.22 points to 2,365.38, while the Nasdaq was higher by 27.37 points to 5,865.94. WTI oil closed at $56.06, +$0.66. 10yr yield 2.43%. Tomorrow's economic data is limited to Existing Home Sales. The Treasury will sell $34B 5-yr Notes, results at 1:00 p.m. ET
US labor market has 'more room to run,' Fed's Kashkari says
(Suggesting he does not believe the central bank should raise rates quickly to head off inflation.)
Click below for more information
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.
4:00 PM Stocks close with fresh record highs on strong retail earnings.
3:58 PM Fed's Kashkari says that the Fed's balance sheet (MBS and Treasuries) should be unwound when the economy is strong enough.
3:43 PM The minutes from the February 1 monetary monetary policy statement will be released tomorrow at 2:00 p.m. ET.
3:20 PM Not much movement in MBS for the past two hours.
3:19 PM San Francisco Fed President Williams (non-FOMC voter) says financial stability risks may be greater with persistently lower rates.
3:06 PM The Dow (20,757), Nasdaq (5,867) and the S&P (2,366) hit record levels on strong retail earnings.
1:59 PM The 3.5% Fannie Mae 30-yr coupon trades back into negative territory as Stocks hold gains.
1:19 PM Philadelphia Fed President Harker (FOMC voter) reiterates that he believes three rate hikes are appropriate in 2017.
1:08 PM The $26B 2-yr Note auction, part of $88B this week, garners an "A-" rating.
12:23 PM Bond traders gear up for the results from today's $26B 2-yr Note offering, results at 1:00 p.m. ET.
11:37 AM Stocks slowly giving up some gains.
11:30 AM The 3.5% Fannie Mae 30-yr coupon able to trade to unchanged.
10:42 AM Goldman Sachs predicts that the 30-year fixed conventional mortgage rate will rise to 5.5% by 2019.
10:23 AM Minneapolis Fed President Kashkari (FOMC voter): will monitor inflation very carefully; balance sheet could be wound down in "not too distant future"; more population or productivity growth necessary to increase growth.
9:52 AM MBS able to bounce off session lows ahead of big buying support from the New York Fed.
9:45 AM U.S. Stocks are at record highs on strong earnings.
8:57 AM Web-based real estate database company Redfin says home prices and sales rose last month while inventory continued to decrease.
8:32 AM Fed Fund Futures show a 36% probability of a hike to the Fed Funds Rate at the March 15 FOMC meeting.
8:31 AM U.S. dollar index 101.53, +0.58.
8:30 AM WTI oil $54.34/barrel, +0.94.
8:29 AM 10-yr T Note yield edges higher to 2.45% from Friday's close of 2.42%.
8:27 AM This week's economic calendar features just New and Existing Home Sales, Jobless Claims and Consumer Sentiment.
8:26 AM There are no economic reports due for release today.
8:25 AM Minneapolis Fed President Kashkari (FOMC voter) will be speaking at 9:00 a.m. ET and Philadelphia Fed President Harker (FOMC voter) will be speaking at 12:00 p.m. ET. today.
8:20 AM Bond prices also weighed down by this week's added supply. The Treasury will sell $26B 2-yr Notes today, $34B 5s tomorrow and $28B 7s on Thursday. All results at 1:00 p.m. ET.
8:18 AM Bond price begin the week lower as Stocks gather strength and after the Eurozone reported PMI that was better than expected.
8:12 AM S&P futures higher as Wal-Mart and Home Depot shares trade higher on positive earnings to begin the holiday shortened week.
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