Bumping on the Ceiling

April 6th, 2017

Commentary not quite at the close.  The chart above shows that we are bumping against the ceiling of resistance.  Tomorrow at 8:30 am EST we will see non-farm payrolls come out. The resistance and the floor may not matter in the numbers surprise the market.  Stay tuned in.

 

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.

4:03 PM The North Korean nuclear threat continues and the Syrian chemical attack weighs on Stocks.
4:02 PM Stocks lost some luster on negative geopolitical news out of Syria and North Korea.
4:00 PM The Dow, S&P and NASDAQ close modestly higher.
3:24 PM Stocks give up a chunk of gains. MBS unchanged and trade in a tight range ahead of the Trump/Xi summit in President Trump's Mar-a-Lago resort.
2:16 PM Legendary comic Don Rickles passes away at 90.
1:41 PM U.S. dollar index 100.64, +0.19.
1:32 PM Stocks move well into positive territory.
1:03 PM At midday, MBS modestly lower. Stocks holding decent gains. 10-yr yield 2.35%.
11:39 AM Next week, the Treasury will sell $24B 3-yr Notes on Monday, $20B 10-yr Notes on Tuesday and $12B 30-yr Bonds on Wednesday.
11:36 AM Freddie Mac reports that the 30-yr fixed conventional mortgage rate declined to 4.10% this week with 0.5 in points and fees.
10:39 AM MBS fell to session lows as Stocks are now trading in positive territory. Be on guard.
9:33 AM Stocks slightly lower soon after the open.
9:06 AM S&P futures edge higher after the lower-than-expected claims data.
8:35 AM 10-yr T Note yield 2.34%.
8:35 AM WTI oil at $51.44/barrel, +$0.28.
8:30 AM Weekly Initial Jobless Claims -25K to 234K, below the 245K expected.
8:18 AM The only economic report that will be released this morning is Weekly Initial Jobless Claims.
8:10 AM The Fed also said it would like to start reducing its balance sheet later in the year as opposed to 2018.
8:09 AM MBS open slightly lower as they continue to be capped by stiff resistance levels and ahead of tomorrow's Jobs Report for March.
8:04 AM Yesterday's Fed minutes revealed that some Fed members thought Stock prices were "quite high relative to standard valuation measures." That sent Stocks from lofty intraday levels to close in negative territory.

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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