Mortgage Bonds closed lower today as the sell-off that began on Tuesday spilled over into this morning, but did manage to close near support. The Fannie Mae 30-yr 3.5% coupon closed at 101.75, -22bp. Stocks closed lower after hitting record closing highs on Wednesday. The Dow lost 112.58 points to 21002.97, the S&P 500 fell by 14.04 points to 2381.92, while the NASAQ was lower by 42.80 points to end the session at 5861.22. WTI oil closed at $52.61/barrel, -$1.21. 10-yr T Note yield 2.49%. Tomorrow's economic data is limited to ISM Services.
Definition of 'Jobless Claims'
The number of people who are filing or have filed to receive unemployment insurance benefits, as reported weekly by the U.S. Department of Labor. There are two categories of jobless claims - initial, which comprises people filing for the first time, and continuing, which consists of unemployed people who have been receiving unemployment benefits for a while. Jobless claims are an important leading indicator on the state of the employment situation and the health of the economy. Average weekly initial jobless claims are one of the 10 components of The Conference Board Leading Economic Index.
|Thursday, March 2, 2017||Report||For||Estimate||Actual||Prior||Impact|
|8:30 AM||Jobless Claims (Initial)||2/25||244K||223K||244K||Moderate|
|Friday, March 3, 2017||Report||For||Estimate||Actual||Prior||Impact|
|10:00 AM||ISM Services Index||Feb||56.5||56.5||Moderate|
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.
2:28 PM The U.S. dollar index continues to rise on hawkish Fed talk.
2:04 PM MBS prices fail to rise despite lower Stock prices.
1:00 PM At midday, MBS hovering near the session lows, Stocks lower. 10-yr yield 2.49%.
11:33 AM Next week, the Treasury will sell $24B 3-yr Notes on Tuesday, $20B 10-yr Notes on Wednesday and $12B 30-yr Bonds on Thursday.
11:21 AM Snapchat Inc. (SNAP) opens at $24.
11:13 AM Stocks fall deeper into negative territory.
10:58 AM Fed Governor Powell (FOMC voter) says "the case for a rate increase in March has come together"; momentum in U.S. economy is "solid"; getting very close to inflation goal of 2% target.
10:02 AM Freddie Mac reports that the 30-yr fixed conventional mortgage rate fell to 4.10% this week with 0.5 in points and fees from 4.16% last week.
10:00 AM The Fannie Mae 30-yr 3.5% coupon falls below support at 101.84 now at 101.75. Be on guard.
9:42 AM SNAP Inc. (Snapchat) set to go public under the ticker symbol SNAP.
9:36 AM Stocks open slightly lower.
9:22 am 3.5% Fannie Mae 30-yr coupon down 6 bp at a price of 101.91 down 3 bp when rates were set yesterday at 10:00 am Open 101.88 High 101.94 Low 101.81
Chart below posted at 9:22 am
8:32 AM Weekly Initial Jobless Claims -19K to 223K vs 244K expected, lowest levels since the early 1970's.
8:27 AM A total of 1.7 million loans were originated on U.S. residential properties in the fourth quarter, according to the Q4 2016 U.S. Residential Property Loan Origination Report from ATTOM Data Solutions. This is down 15% from the previous quarter but still up 2% from the year before. Housingwire
8:18 AM The chance of a hike to the Fed Funds Rate is now at 80%.
8:16 AM Weekly Initial Jobless Claims will be released at 8:30.
8:14 AM S&P futures flat after yet another record high close yesterday of 2,395.
8:13 AM WTI oil $53.09/barrel, -$0.75.
8:11 AM The U.S. dollar index 102.07, +0.29 as the odds of a rate hike increases.
8:10 AM The 10-yr T Note yield at 2.47% vs yesterday's close of 2.46%.
8:08 AM The Fannie Mae 30-yr 3.5% coupon opens at 101.88 just above support two (S2) at 101.84.
8:04 AM MBS look to open flat to lower after the two-day plunge touched off by increasing chances of a rate hike later this month.
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