March 20th, 2017
Commentary at the close: Mortgage Bonds ended the day on a high note, pushing above the first resistance level to close at 101.88, up 22 bp for the day, up 22 bp since 10am when rates were set. The bond opened at 101.66, the low was 101.56 & the high was 101.88 (the same as the close).
The Dow Jones and Nasdaq also experienced modest gains with the Dow closing at 20931.91 (up 17.29) and the Nasdaq at 5903.24 (up 2.24). The S&P closed down 4 bps at 2374.25. WTI Crude continued its slide downward, ending the day at 48.95, down .31 cents a barrel. Economic releases this week are few, starting with Wednesday’s Existing Home Sales, Thursday’s New Home Sales, and Durable Goods Orders on Friday.
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.
|3:19 PM Mortgage Bonds heading towards the close with prices above R1. Let’s hope this positive trend continues.|
|2:09 PM U.S. dollar index 100.22 +0.11|
|11:55 AM USD LIBOR 1-month .97%, 3-month 1.15%, 6-month 1.43%, 12-month 1.81%.|
|10:20 AM WTI oil at 48.33/barrel down 45 cents.|
|8:48 AM Chicago Fed President Evans (FOMC voter) says fiscal policy could provide an important boost to inflation; three rate hikes in 2017 "entirely possible," could be more more or fewer depending on the outlook; there is room to bring inflation towards 2% or a touch higher; favors explaining the plan to roll off balance sheet next.|
|8:33 AM Minneapolis Fed President Kashkari says subdued inflation led him to be the lone dissenter in last week's 1/4 point hike to the Fed Funds Rate.|
|8:26 AM The Fannie Mae 3.5% coupon continues to trade near resistance at 101.62.|
|8:11 AM Housing data this week includes the FHFA Housing Price Index, Existing Home Sales and New Home Sales.|
|8:10 AM There are no economic reports due for release today and the week's calendar is on the light side.|
|8:08 AM U.S. dollar index 100.13, near unchanged.|
|8:07 AM MBS open near unchanged.|
|8:07 AM WTI oil $48.04/barrel, $0.74.|
|8:05 AM U.K. to trigger Article 50 on March 29, will begin formal Brexit process.|
|8:04 AM 10-yr T Note yield 2.50%, unchanged.|
|8:04 AM S&P futures slightly lower.|
|8:02 AM MBS look to start the week near unchanged after last week's volatile five trading days.|
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