April 24th, 2017
4/24/17 End of the day commentary Risk on was tthe trade today after the elections in France touched off a global Stock market rally. There were no economic reports released today to influence the markets. The Fannie Mae 30-yr 3.5% coupon closed slightly lower and off their session lows at 102.78, -9bp. Stocks staged their biggest rally since March 1. The Dow gained 216.13 to 20,763.89, the S&P was up 25.46 points to 2,374.15, while the NASDAQ surged by 73.29 points to end at 5,983.81. Stocks and bonds compete for the same investment dollar. So a pretty good day for bonds considering the rally in the stock market. Call me a glass half full guy. WTI oil settled at $49.23/barel, down $0.39. 10-yr yield 2.27%. Tomorrow's economic data includes Case-Shiller 20-city Index, New Home Sales and Consumer Confidence.
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.
|Mon, Apr 24 3:15 PM Trump tells aides he wants 15% corporate tax rate.|
|Mon, Apr 24 3:11 PM Dow +237 points.|
|Mon, Apr 24 3:00 PM Stocks holding big gains after the French election results.|
|Mon, Apr 24 1:46 PM Past midday, MBS lower, off worst levels. D02 +2.13 points. to-yr yield 2.27%|
|Mon, Apr 24 11:59 AM Approaching midday, MBS bounce off the session lows. The 3.5% 30-yr Fannie Mae coupon did hit 102.53 this morning, now at 102.78.|
|Mon, Apr 24 11:52 AM The 10-yr yield at 2.26% from the early high of 2.31%.|
|Mon, Apr 24 11:24 AM MBS hit session highs and cut most earlier losses.|
|Mon, Apr 24 9:01 AM This week, the Treasury will sell $26B 2-yr Notes on Tuesday, $34B 5-yr Notes on Wednesday and $28B 7-yr Notes on Thursday.|
|Mon, Apr 24 8:54 AM The possibility of a major tax reform this week by the Trump administration is also adding to the bullish sentiment in Stocks this morning.|
|Mon, Apr 24 8:45 AM With today's losses, the Fannie Mae 30-yr 3.5% coupon fell to support one (S1) at the 25-day Moving Average (102.49) before bouncing off that level. Last week the price hit a five-month high of 103.31.|
|Mon, Apr 24 8:31 AM U.S. dollar index 98.99, -0.88.|
|Mon, Apr 24 8:31 AM WTI oil $49.93/barrel, +$0.30. National average price for a regular gallon of gasoline rises to $2.46|
|Mon, Apr 24 8:26 AM There are no economic reports due for release today.|
|Mon, Apr 24 8:25 AM Bond prices are sinking here in the U.S. as risk on is the trade today. After hitting 2.16% last Tuesday, the 10-yr yield rises to 2.30% this morning|
|Mon, Apr 24 8:21 AM French candidate Emmanuel Macron and Marie Le Pen will now advance to a run-off with Macron seen as the likely to prevail against Le Pen.|
|Mon, Apr 24 8:19 AM The pro-Euro result in the French elections push global Stocks considerably higher while U.S. S&P futures soar.|
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