Hello 103

April 13th, 2017

At the Close 3.5% Fannie Mae 30-yr coupon up  9 bp at a price of 103.00  up  16 bp when rates were set today at 10:00 am Open 102.88 High 103.03 Low 102.75

MBS closed flat to slightly higher reaching the 2017 price peaks.  (See chart below)

Treasuries prices surged higher in this geopolitical environment after news that the U.S. dropped a massive bomb on Islamic State forces in eastern Afghanistan along with tension in North Korea and Syria. The 10-yr yield briefly touched 2.21%. The 10-yr yield ended the day at 2.2320%.  This is 0.3788 basis points lower than the peak that the 10-yr yield hit back in March

The Bond markets closed at 2:00 p.m. ET and both Stocks and Bonds are closed tomorrow for the Good Friday holiday. Have a great holiday weekend! 

 

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.

 

 

 

1:23 PM The MBAs Builder Application Survey Surges 23% in March after a 16% rise in February, highest point since the series began in August 2012. It was the third straight month of sharp increases.
1:06 PM At midday, Stocks pushing lower on the news of the U.S. bomb dropping on ISIS. MBS modestly higher.
1:00 PM The U.S. drops the mother of all bombs (first time used in combat) on a reported ISIS site in Afghanistan. Bond prices edge higher.
10:48 AM MBS able to bounce off the session lows and trade back to unchanged levels at the 2017 price peaks.
10:17 AM The S&P edges into positive territory.
10:09 AM Freddie Mac reports that the 30-yr fixed mortgage rate falls to 4.08% this week from 4.10% last week with 0.5 in points and fees.
10:04 AM MBS edging lower into negative territory. Treasury prices well off highs.
10:01 AM Early April Consumer Sentiment 98 vs 96.3 expected, up from 96.9 in March.
9:54 AM Stocks erase opening losses, now near unchanged.
9:30 AM As expected, Stocks open lower.
8:45 AM Citigroup, Wells Fargo report better-than-expected earnings.
8:41 AM Trump's dollar and interest rate remarks weigh on Stock futures.
8:40 AM JPMorgan Chase reports better-than-expected quarterly profits.
8:38 AM The Bond markets will close at 2:00 p.m. ET today and both Stocks and Bonds will be closed tomorrow for the Good Friday holiday.
8:36 AM Weekly Initial Jobless Claims 234K vs 251K, near unchanged from the previous week.
8:31 AM Wholesale inflation cool ... PPI -0.1% vs 0.0%. Core PPI 0.0% vs 0.2%.
8:30 AM S&P futures lower.
8:20 AM WTI oil $53.22/barrel, near unchanged.
8:20 AM Inflation reading PPI along with Weekly Initial Jobless Claims will be released at 8:30, Consumer Sentiment at 10.
8:17 AM The 10-yr T Note yield 2.34%, from yesterday's close of 2.29%.
8:15 AM MBS open near unchanged a day after President Trump sparked a rally in the Bond markets when he said the dollar was too strong and that he favors a low interest rate environment.

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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