100 day moving average (Currently 102.32) is stiff resistance

March 30th, 2017

Commentary at the close: MBS gave back most of yesterday's gains in today's session as the seesaw trading pattern continues. The 3.5% Fannie Mae 30-yr coupon hit a high of 102.41 this week, a low of 101.94 only to close today at 102.09, -16bp. Stocks ended higher fueled by solid consumer spending and corporate profits within the GDP report. The Dow gained 69.17 points to 20,728.49, the NASDAQ was up 16.79 to 5,914.34, a record high close. The S&P rose by 6.93 points to end at 2,268.06. WTI oil closed at $50.35/barrel, +$0.84. 10-yr T Note yield 2.42%. Tomorrow's economic data features, Personal Income & Spending, Core PCE, Chicago PMI and Consumer Sentiment. 

 

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.

4:32 PM Fed's Dudley says rate hikes are appropriate to reduce the risk of overheating.
3:47 PM JPMorgan economist sees Fed shrinking balance sheet starting 2018.
3:02 PM Stocks holding gains after GDP showed robust consumer spending and robust corporate profits.
2:22 PM Stocks holding solid gains. After failing to break above critical resistance, MBS trade just above session lows. 10-yr yield edges higher to 2.41%.
12:02 PM MBS at session lows. Alert To Lock!
10:19 AM Stocks push well into positive territory. MBS at session lows. Be on guard for an Alert To Lock.
10:11 AM Freddie Mac reports that the 30-yr fixed rate mortgage fell to 4.16% this week from 4.23% in the previous week with 0.5 in points and fees.
9:36 AM Stocks open near unchanged.

9:15 AM The 100 day moving average is currently 102.32.

9:14 AM  3.5% Fannie Mae 30-yr coupon up  0  bp at a price of 102.25 up 9 bp when rates were set yesterday at 10:00 am Open 102.25 High 102.28 Low 102.16

9:04 AM Not much reaction in Bond prices from the GDP data.
8:44 AM Within GDP we see that consumer spending rose 3.5% from 3%, while corporate profits rise 9.3% from a year ago.
8:34 AM Weekly Initial Jobless Claims flat at 258K vs 245K expected. http://www.cnbc.com/2017/03/30/us-weekly-jobless-claims-mar-25-2017.html
8:33 AM Final Q4 2016 GDP 2.1% vs 1.9% from the second reading.http://www.businessinsider.com/us-gdp-growth-2016-q4-third-estimate-2017-3
8:18 AM WTI oil $49.46/barrel near unchanged.
8:17 AM U.S. dollar index 99.96, +0.12.
8:16 AM 10-yr T Note yield 2.38%.
8:14 AM Stock futures modestly lower as the market looks for new catalysts heading into corporate earnings season.
8:10 AM MBS open near unchanged ahead of Fed speakers, GDP data at 9:30.

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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