NASDAQ 6000

April 25th, 2017

Commentary at the close: Today's downward move in MBS was influenced by the big rally in Stocks and better-than-expected New Home Sales and earnings reports. The Bond closed at 102.44, -34bp. The Dow gained 232.12 points to 20,996.12 while the S&P 500 Index was up 14.46 points to 2,88.81. The NASDAQ closed above 6,000 for the first time ever up 41.67 points ending at 6,025.49. WTI oil closed at $49.56/barrel, +$0.33, snapping a 6-day losing streak. 10-yr T Note yield 2.33%. There are no economic reports due out tomorrow.

 

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.

4:07 PM EST 3.5% Fannie Mae 30-yr coupon down  31 bp at a price of 102.47  down  19 bp when rates were set today at 10:00 am Open 102.66 High 102.69 Low 102.47 (See chart above that shows prices moving down and this means yields are moving up)

Tue, Apr 25 4:03 PM The NASDAQ closes above 6,000 for the first time ever.
Tue, Apr 25 4:02 PM Stocks close with big gains in an earnings fueled rally.
Tue, Apr 25 3:03 PM The Fannie Mae 30-yr 3.5% (102.47) coupon falls below support one (S1) at the 25-day Moving Average (102.53). 
Tue, Apr 25 2:57 PM MBS trade near the session lows. 10-yr yield rises to 2.33%.
Tue, Apr 25 1:09 PM $26B 2-yr Note auction garners an "A-" rating.
Tue, Apr 25 1:01 PM At midday, MBS hit session lows. 10-yr yield 2.31%. Dow +236 points. 
Tue, Apr 25 12:54 PM Alert To Lock!
Tue, Apr 25 12:51 PM MBS now at session lows. Be on guard.
Tue, Apr 25 11:53 AM MBS trade in a tight range this morning near the session lows.
Tue, Apr 25 11:43 AM The current U.S. Prime Rate is 4%.
Tue, Apr 25 10:36 AM Dow +231 points.
Tue, Apr 25 10:03 AM April Consumer Confidence 120.3 vs 122.3 expected.
Tue, Apr 25 10:02 AM March New Home Sales +5.8% from February to an annual rate of 621K vs 590K expected.
Tue, Apr 25 9:57 AM The NASDAQ hits 6,000 for the first time ever.
Tue, Apr 25 9:37 AM Stocks surge at the open, Dow +180 points.
Tue, Apr 25 9:11 AM S&P Case Shiller 20-city Home Price Index rises 5.9% from February 2106 to February 2017.

 

Tue, Apr 25 8:29 AM French centrist candidate Emmanuel Macron continues to lead the National Front's Marine Le Pen by roughly 20 percentage points in polling for May 7's run-off vote.
Tue, Apr 25 8:28 AM WTI oil $49.13/barrel, near unchanged.
Tue, Apr 25 8:28 AM U.S. dollar index 98.87, -0.10.
Tue, Apr 25 8:27 AM The Treasury will sell $26B 2-yr Notes, results at 1:00 p.m. ET.
Tue, Apr 25 8:25 AM Economic data out this morning, Case Shiller 20-city Home price index at 9:00 a.m. ET, New Home Sales and Consumer Confidence at 10.
Tue, Apr 25 8:24 AM 10-yr T Note yield rises to 2.30% from yesterday's close of 2.27%. Last Tuesday the 28th, yield was 2.16%.
Tue, Apr 25 8:21 AM S&P futures higher on better-than-expected earnings from some large-cap companies, anticipation of Trump's tax reform.
Tue, Apr 25 8:18 AM MBS continue to push lower as the Stock rally gains momentum.

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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