May 22nd, 2017
President Trump began his first foreign trip in Saudi Arabia and other Gulf States over the weekend as the U.S. signed $350 billion worth of defense equipment and service supports, which is lifting Stocks this morning. The president will now visit Israel on Monday and Tuesday, Rome and the Vatican on Wednesday. Stocks took a hit last week over political turmoil out of the Trump administration, but those concerns quickly faded. The closely S&P 500 Stock Index continues to trade near all-time highs.
There are no economic reports due for release today and the calendar is on the light side this week. Trading volumes will most likely begin to ease late Thursday as players gear up for the long Memorial Day weekend, the unofficial kick off of summer. The week the treasury will sell a total of $88B in Treasury Notes, which could impact trading.
Heading into the long Memorial Day weekend, drivers are expected to take to the roads in a big way as they head off to their favorite vacation destinations. Motor club AAA expects 39.3 million Americans will travel this holiday weekend, the most in the past 12 years. Most of those will travel by car as AAA expects 34.6 million on the roads. A total of 2.9 million people in the USA are expected to take to the skies this Memorial Day, an increase of 5.5% over last year.
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.
|Not much action in the mortgage bond markets today with little movement seen in prices. There were no economic reports released today. The Fannie Mae 30-yr coupon closed near unchanged at 102.97. Stocks rallied on defense and tech stocks. The Dow rose 89.99 points to 20,894.83, the S&P 500 gained 12.29 points to 2,394.02, while the NASDAQ was up 49.91 points to end at 6,133.61. WTI oil closed at $50.73/barrel, +$0.40. 10-yr T Note yield 2.25%. April New Home Sales will be released tomorrow.|
|Mon, May 22 2:26 PM Well past midday, no movement in MBS on this quiet trading day. Stocks holding gains. 10-yr yield 2.25%.|
|Mon, May 22 12:32 PM U.S. equity markets lifted by defense and tech stocks.|
|Mon, May 22 11:23 AM The "Greatest Show on Earth", 146 year old Ringling Bros. and Barnum & Bailey Circus, had it final performance over the weekend marking an end to an era brought on by animal advocates.|
|Mon, May 22 11:18 AM MBS trade in an extremely tight range the past hour with little conviction to either side of the market. Stocks holding gains.|
|Mon, May 22 10:52 AM The Bond markets will be closing early at 2:00 p.m. ET this Friday and will be closed on Monday, May 29 in observance of Memorial Day.|
|Mon, May 22 9:34 AM Dow +80 points.|
9:29 AM ET 3.5% Fannie Mae 30-yr coupon down 3 bp at a price of 102.97 up 9 bp when rates were set yesterday at 10:00 am Open 102.91 High 102.97 Low 102.91
Numbers to watch for: 102.44 50 day moving average the market considers a buying opportunity
102.71 25 day moving average the market now considers a buying opportunity.
103.33 200 day moving average the market considers a selling opportunity
|Mon, May 22 9:32 AM Stocks open higher as Trump continues first presidential trip overseas.|
|Mon, May 22 8:41 AM U.S. dollar index 96.80, -0.22.|
|Mon, May 22 8:30 AM WTI oil at $50.97/barrel, +$0.64.|
|Mon, May 22 8:29 AM There are no economic reports being released today.|
|Mon, May 22 8:29 AM The 10-yr Note yield 2.24%.|
|Mon, May 22 8:26 AM The Treasury will be peddling $26B 2-yr Notes on Tuesday, $24B 5s on Wednesday and $28B 7s on Thursday.|
|Mon, May 22 8:23 AM MBS begin the week slightly lower which features a lean economic calendar with housing in the spotlight and the second reading om Q1 GDP.|
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