Non Farm Payrolls Friday coming Tomorrow 8:30 AM ET

May 4th, 2017

At the close  3.5% Fannie Mae 30-yr coupon down12 bp at a price of 102.53 up 3 bp when rates were set today at 10:00 am Open 102.53 High 102.62 Low 102.34

 

Commentary at the close: MBS saw minor losses today closing off their worst levels as the S&P closed near unchanged, weighed down by plunging oil prices. The declines in MBS came despite the drop in oil as rising unit labor costs and Wednesday's FOMC statement weighed on demand for Mortgage Backed and treasury securities. The Bond closed at 102.56, -9bp. Stocks closed near unchanged. The Dow finished at 20,951.47, the S&P 500 Index at 2,389.52, while the NASDAQ settled at 6,075.33. WTI oil closed at $45.52/barrel, -$2.44. 10-yr T Note yield 2.35%. Tomorrow the widely anticipated Jobs Report for April will be released where it is expected that 180K jobs were created. Be sure to tune in tomorrow morning at 8:30 a.m. ET to get the headlines and market reaction.

 

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.

Thu, May 04 3:29 PM The new healthcare bill will now go to the Senate.
Thu, May 04 2:21 PM The House passes an amended health care bill.
Thu, May 04 1:40 PM MBS able to bounce off session lows.
Thu, May 04 1:00 PM At midday, MBS, oil and Stock prices all lower. 10-yr yield 2.35%. However, Stocks well off worst levels.
Thu, May 04 12:19 PM Stock losses accelerate as the plunge in oil prices sends energy shares lower.
Thu, May 04 11:57 AM Oil prices continue to decline now at the lowest levels since November on concerns of rising global supplies and high inventories. WTI oil -$2.08 to $45.74/barrel.
Thu, May 04 11:41 AM Next week, the Treasury will sell $24B three-year notes, $23B 10-year notes and $15B 30-year Bonds.
Thu, May 04 10:19 AM The House begins debating on healthcare reform on Capitol Hill.
Thu, May 04 10:08 AM Freddie Mac reports that the 30-yr fixed conforming mortgage rate was essentially unchanged at 4.02% with 0.5 in points and fees.
Thu, May 04 9:44 AM Stocks quickly give up gains and trade to unchanged.
Thu, May 04 9:32 AM Stocks open modestly higher.
Thu, May 04 9:18 AM MBS continue to push lower.
Thu, May 04 8:41 AM The decline in Productivity led to higher unit labor costs, somewhat inflationary.
Thu, May 04 8:34 AM Q1 Productivity -0.6% vs 0.1% expected.
Thu, May 04 8:31 AM Weekly Initial Jobless Claims -19K to 238K vs 246K expected.
Thu, May 04 8:27 AM The Fed statement read that the Committee views the slowing in growth during the first quarter as likely to be transitory. The Atlanta Fed's GDPNow forecasts Q2 GDP 2017 at 4.3%.
Thu, May 04 8:25 AM Traders look ahead to Friday morning's release of the April Jobs Report.
Thu, May 04 8:24 AM Weekly Initial Jobless Claims and Productivity will be released at 8:30 a.m. ET. 
Thu, May 04 8:22 AM The New York Fed will purchase up to $1.6B in Fannie/Freddie 3.5% and 4% coupons beginning at 9:00 a.m. ET.
Thu, May 04 8:21 AM WTI oil $46.83, -$1.04.
Thu, May 04 8:21 AM U.S. dollar index 99.04, near unchanged.
Thu, May 04 8:20 AM 10-yr yield rises to 2.34%.
Thu, May 04 8:19 AM S&P futures higher after the Fed downplayed economic weakness.
Thu, May 04 8:18 AM MBS open modestly lower following yesterday's decline after a somewhat hawkish Fed statement.

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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