Mortgage Markets Slightly Better
The mortgage and bond markets were
slightly better while the stock market was quiet today - but nothing
substantial and still bearish. Nothing really occurred today to affect markets.
Finally tomorrow we get some key data with February retail sales, along with
the Treasury selling $13B of 30yr bonds, and weekly jobless claims.
The Fed is convinced employment is off and running albeit Yellen fears the
quality of jobs being created. Investors and Wall Street opinions though do not
give much thought to the poor low-paying jobs that make up the majority of new
jobs.
Next Wednesday markets will have more insight about what the Fed is about to do with rates, or will they? After EVERY FOMC meeting markets spend days interpreting what the policy statement means, what the Fed is trying to say with convoluted Fedspeak, and the Fed will release its quarterly forecasts. Janet Yellen will try to add more Fedspeak with her press conference after the meeting.
Treasury found good demand for the 10yr note auction this afternoon, re-opening the 10yr issued last month. The reaction dropped the 10yr to 2.11%.
The dollar had another strong day against the yen and euro currency - investors increasingly concerned about the effect on future earnings of businesses that market internationally. Make your vacation reservations for April in Paris now.
Nothing has changed, rate markets remain technically bearish, and most of us always pay more attention to market action rather than all of the commentary and opinions. MBS prices are better now than when prices were set this morning, but is it enough to start considering to float? It is marginal.
In summary, we have had a couple solid treasury auctions this week which have helped rates to improve. Tomorrow brings us the most important economic data report of the week when Retail Sales is released. A better than expected report can pressure rates higher while a softer report could extend our rally. We also have the last auction of the week. It is not uncommon to see rates rally once supply has been absorbed. We have seen some solid improvements in pricing over the last couple days, so loans closing in under 15 days should consider locking.
Next Wednesday markets will have more insight about what the Fed is about to do with rates, or will they? After EVERY FOMC meeting markets spend days interpreting what the policy statement means, what the Fed is trying to say with convoluted Fedspeak, and the Fed will release its quarterly forecasts. Janet Yellen will try to add more Fedspeak with her press conference after the meeting.
Treasury found good demand for the 10yr note auction this afternoon, re-opening the 10yr issued last month. The reaction dropped the 10yr to 2.11%.
The dollar had another strong day against the yen and euro currency - investors increasingly concerned about the effect on future earnings of businesses that market internationally. Make your vacation reservations for April in Paris now.
Nothing has changed, rate markets remain technically bearish, and most of us always pay more attention to market action rather than all of the commentary and opinions. MBS prices are better now than when prices were set this morning, but is it enough to start considering to float? It is marginal.
In summary, we have had a couple solid treasury auctions this week which have helped rates to improve. Tomorrow brings us the most important economic data report of the week when Retail Sales is released. A better than expected report can pressure rates higher while a softer report could extend our rally. We also have the last auction of the week. It is not uncommon to see rates rally once supply has been absorbed. We have seen some solid improvements in pricing over the last couple days, so loans closing in under 15 days should consider locking.
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