Monday

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.


 

Johnmarbury.com has attempted to verify the information contained on this post.  However any aspect of such may change without notice.  Johnmarbury.com does not provide investment advice and does not represent that any of the information or related analysis is accurate or complete at any time. On October 5th we started posting our rates and leaving them on the site for you to refer back to. This will allow  you see where actual rates have been along with the news that caused the fluctuations on the rate sheet.  I ask that you forgive my spelling and grammatical mistakes. This is due writing skills that are lacking and the need to communicate quickly.  Most of the information posted on this blog along with the charts and indexes are available all during the day to the subscrbers of www.themortgagemarketguide.com  The cost of subscription is very reasonable.

 

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