ADP & ISM Services coming out tomorrow

April 4th, 2017

Closing Comments: With the inability of the 3.5% Fannie Mae 30-yr coupon to overtake resistance (R2: $102.72) Resistance is what traders consider as a sale signal.  For this reason borrowers might consider this as a good time to lock in. Also prices are vulnerable at current levels and with a slew of headline risk between now and the Non-Farm Payrolls Report on Friday morning.  If you want to know more about the Non-Farm Payrolls Report click on the following link: https://www.johnmarbury.com/blog/8964/what-is-the-non-farm-payrolls-reports

Not much movement in MBS today as traders look ahead to this week's headline risk events in ADP Payrolls, Fed minutes and the government's Jobs Report. Prices opened near unchanged and slid lower and remained in a holding pattern just below the flat line for most of the session. There were no economic reports released today. The Bond closed lower by 12bp to end at 102.56 from the session high of 102.72. Stocks closed slightly higher as the market eyes earnings season and the Trump summit with China's Xi. The Dow gained 39.03 points to 20,689.24, the NASDAQ was up a meager 3.92 points to 5,898.60, while the S&P 500 squeaked out a 1.32 point gain to 2,360.24. WTI oil closed at $51.03/barrel, +$0.79. 10-yr T Note yield 2.36%. Tomorrow's economic data includes March ADP Private Payrolls and March ISM Services.

 

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.

Fannie Mae 30-yr coupon down  12 bp at a price of 102.56 down 3 bp when rates were set today at 10:00 am Open 102.31 High 102.72 Low 102.31

 

4:00 PM S&P closes near unchanged as investors eye earnings season.
2:21 PM The S&P 500 trades near unchanged as caution builds ahead of the Trump-Xi summit.
1:36 PM Fed Fund Futures show a near 55% chance of a hike to the Fed Funds Rate in June. No hike is expected at the May meeting.
1:21 PM Richmond Fed President Lacker will resign from the Federal Reserve today saying that he leaked confidential information in 2012 to Medley Global Advisors in 2012.
12:54 PM Near midday, MBS modestly lower, Stocks mixed. 10-yr yield 2.35% from this morning's low of 2.31%.
10:31 AM The Dow turns positive. Be on the lookout for a reversal lower in Mortgage Bond prices.
10:30 AM MBS lose a little ground and trade in a tight range for the past hour as they trade just below unchanged levels.
9:35 AM The S&P 500 opens modestly lower.
9:05 AM MBS edging lower, despite lower Stock futures.
8:28 AM Small business hiring edged lower in March after gains in the past three months, reports human resources solution firm Paychex.
8:14 AM WTI oil $50.47/barrel, +$0.25.
8:12 AM U.S. dollar index 100.53, +0.11.
8:09 AM 10-yr T Note yield 2.31%, near unchanged.
8:08 AM MBS open near unchanged.
8:08 AM There are no major economic reports due for release today.
8:05 AM MBS look to open flat to higher as S&P futures edge lower as caution is seen ahead of the Trump and China's -XI meeting this week.

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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