CHM Blog

Bond markets began slightly better this morning but remain in the tight range. This week has two very key reveals, Wednesday July PCE inflation and Friday Fed chair Kevin Warsh will deliver the keynote address at the Global Economic Forum in Jackson Hole, WY.

The current plan for Iran is to increase sanctions. The new measures will add to an extensive sanctions already targeting Iran’s banking, energy, aviation and cryptocurrency sectors.

This week’s calendar:

• Monday:

Nothing.

• Tuesday:

$68B 2 year auction, June Case/Shiller home price index (20 city year/year 1.8% up from +1.6%), August consumer confidence index from the Confidence Board (90.1 from 90.8), July new home sales 620K from 628K).

• Wednesday:

$70B 5 year note auction, weekly MBA mortgage application’s, 2nd look at Q2 GDP (1.5% unch from the advance release), July durable goods orders (month/month +0.5% from +0.3%), July personal income and spending (income month/month +0.2%, spending month/month +0.1%). July PCE inflation (month/month +0.1% from -0.1%June, year/year +3.6%% from +3.7%% in June; core month/month +0.2% from +0.1%, year/year core Unchanged at +3.3%).

• Thursday:

$44B 7 year note auction, weekly jobless claims (208K from 206K).

• Friday:

August Chicago purchasing managers index (59.0 from 57.6). University of Michigan final August consumer sentiment index (51.0 unch from mid-month).

PRICES @ 10:00 AM

10 year note: 4.70% -3 bp

5 year note: 4.40% -3 bp

2 year note: 4.23% -1 bp

30 year bond: 5.23% -4 bp

30 year FNMA 6.0: @9:30 am 101.24 -4 bp (-9 bp from 9:30 am Friday)

30 year FNMA 5.5: @9:30 am 99.15 -1 bp (-10 bp from 9:30 am Friday)

30 year GNMA 6.0: @9:30 am 100.37 -3 bp (-10 bp from 9:30 am Friday)

Dollar/Yen: 159.10 +0.16 yen

Dollar/Euro: $1.1670 -$0.0010

Dollar Index: 98.94 +0.14

Gold: $4,7231.40 +$50.80

Bitcoin: 78,612 +1276

Crude Oil: $85.74 -$1.32

DJIA: 53,444 +167

NASDAQ: 25,958 -222

S&P 500: 7650 -24

Richard Sardella has been actively managing and providing services in the mortgage industry for over 30 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.