June 7th, 2018 8:51 AM by Richard Sardella MLO.100007700/NMLS 233568
Rate markets started generally unchanged from yesterday. No different news today; the G-7 meeting in Quebec will take place tomorrow with President Trump somewhat on the outside looking in. The other six countries are banding together to resist Trump’s tariffs and what is now beginning to be seen as protectionism rather than trying to balance global trade that Trump believes has hurt US trade growth and equality over the last two decades. It is the moment when either it ends with new co-operation or increasing tensions between US and our allies. French President Emmanuel Macron is saying he won't sign the traditional joint statement unless progress is made on tariffs and other issues.
Vladimir Putin is saying today he had warned European countries years ago about the risk of the United States imposing its rules on others, and that they were now paying the price for ignoring him. “It appears our partners thought that this would never affect them, this counterproductive politics of restrictions and sanctions. But now we are seeing that this is happening.” Putin jumping in as global resistance is increasing.
China and the US have come to a deal that will allow the Chinese telecommunications company ZTE to begin buying US supplies, re-opening the company that has been shut out of needed technology that had been banned. A step in the right direction, but China still is saying if a deal on trade isn’t progressing by next week it will “bond” with the EU against Trump’s initiatives.
Jamie Dimon and Warren Buffett said in a WSJ article today that they want companies to end providing quarterly guidance when they release their quarterly results. The thinking of the two is that companies should look more to long-range outlooks and planning. Buffett today on CNBC commented on the US economy; "Right now, there's no question: It's feeling strong. I mean, if we're in the sixth inning, we have our sluggers coming to bat right now,"…. "The way I look at it, there is nothing that is a real pothole.”
Weekly jobless claims this morning are down -1K to 222K about in line with forecasts.
At 9:30 am EST the DJIA opened +73, NASDAQ +5, S&P +4. The 10-yr at 9:30 am remained unchanged at 2.97% after hitting 2.985% earlier this morning.
Later this morning Treasury will officially announce the amounts of next week’s 10 r and 30 yr auctions.
At 3:00 pm April consumer credit will be released; as you know we focus attention on the use of credit cards by consumers. Normally it isn’t a direct market mover, but it also isn’t overlooked by economists and analysts.
So far today there has been no real change in the bond and mortgage markets and the rest of the day likely will see little movement.
PRICES @ 10:00 AM
10 yr. note: +1/32 (3 bp) 2.97% unch (high this morning 2.985%)
5 yr. note: unch 2.81% unch
2 Yr. note: +1/32 (3 bp) 2.52% -1 bp
30 yr. bond: +2/32 (6 bp) 3.12% unch
Libor Rates: 1 mo. 2.029%; 3 mo. 2.320%; 6 mo. 2.483%; 1 yr. 2.740%
30 yr. FNMA 4.0 June: @9:30 101.56 -2 bp (-10 bp from 9:30 yesterday)
15 yr. FNMA 4.0: @9:30 102.57 -6 bp (-4 bp from 9:30 yesterday)
30 yr. GNMA 4.0: @9:30 102.20 unch (-5 bp from 9:30 yesterday)
Dollar/Yen: 109.95 -0.24 yen
Dollar/Euro: $1.1821 +$0.0047
Dollar Index: 93.33 -0.28
Gold: $1302.60 +$1.20
Crude Oil: $65.26 +$0.53
DJIA: 25,245.65 +99.26
NASDAQ: 7684.36 -4.88
S&P 500: 2776.96 + 4.61
Richard Sardella has been actively managing and providing services in the mortgage industry for over 27 years. Richard serves on the board of directors as President of Colorado Home Mortgages Inc.
All information furnished has been forwarded to you and is provided by thetbwsgroup only for informational purposes. Forecasting shall be considered as events which may be expected but not guaranteed. Neither the forwarding party and/or company nor thetbwsgroup assume any responsibility to any person who relies on information or forecasting contained in this report and disclaims all liability in respect to decisions or actions, or lack thereof based on any or all of the contents of this report.
MLO of record MLO.100007700 / NMLS#233568 / CHM NMLS#127716.