Investors in holding pattern

April 21st, 2017

Commentary at the close: MBS hugged the flatline for most of the session as traders squared up positions ahead of the Sunday elections in France. Today's strong Existing Home Sales also capped mortgage bond prices. The 3.5% Fannie Mae 30-yr coupon closed at 102.84, -6bp. Stocks closed with minor losses. The Dow fell 30.95 points to 20,547.76, the S&P fell by 7.15 points to 2,348.69, while the NASDAQ was lower by 6.25 points to end the week at 5,910.52. WTI oil fell by $1.09 to settle at $49.62/barrel and down nearly 7% for the week as the markets doubt OPEC production cuts. 10-yr T Note was unchanged at 2.24%. Next week investors will receive first quarter Gross Domestic Product, which is supposed to be weak. Have a great 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.

Fri, Apr 21 3:18 PM Stocks cut into losses after the White House announces the tax reform plan is due to be released next week.
Fri, Apr 21 2:11 PM AP reports President Donald Trump says businesses and individuals will receive a "massive tax cut" under the tax reform package.
Fri, Apr 21 2:09 PM AP reports that the White House will release tax reform package next week.
Fri, Apr 21 1:00 PM At midday, MBS flat to slightly higher. Stocks edging lower. 10-yr yield 2.21%.

Fri, Apr 21 11:22 AM Fed Vice Chairman Fischer says he still anticipates three rate hikes this year, though the Fed isn't tied to that.

Fri, Apr 21 10:34 AM Mortgage Bonds trade in a tight range. S&P, Dow and NASDAQ trade near unchanged.
Fri, Apr 21 10:03 AM March Existing Home Sales +4.3% from February to 5.71M annualized units vs 5.58M expected, up from 5.47M.
Fri, Apr 21 9:51 AM Stocks quickly edge into negative territory.
Fri, Apr 21 9:44 AM The S&P trades near unchanged soon after the open.
Fri, Apr 21 8:25 AM March Existing Home Sales will be released at 10:00 a.m. ET where it is expected that 5.58M units were sold on an annual basis.
Fri, Apr 21 8:20 AM U.S. dollar index 99.81, +0.13.
Fri, Apr 21 8:16 AM WTI oil $50.66/barrel, near unchanged.
Fri, Apr 21 8:12 AM The 3.5% Fannie Mae 30-yr coupon closed below the year highs yesterday. The Bond hit 103.31 on Tuesday, a fresh 2017 high, and hit 102.75 yesterday, before closing at 102.97.
Fri, Apr 21 8:11 AM Next week, the Treasury will sell $26B 2-yr Notes on Tuesday, $34B 5-yr Notes on Wednesday and $28B 7-yr Notes on Thursday.
Fri, Apr 21 8:10 AM 10-yr yield unchanged at 2.23% near unchanged.
Fri, Apr 21 8:09 AM MBS open near unchanged, S&P futures slightly higher as investors look to the Sunday elections in France.

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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