August 27th, 2026 9:40 AM by Richard Sardella MLO.100007700/NMLS 233568
A quiet start this morning in the bond market.
The only data today, weekly jobless claims at 203K with estimates at 208K down 4K from the previous week. Continuing claims, a gauge of outstanding unemployment fell by 18,000 to 1,778,000 in the earlier period, also below expectations. The data extended the period of resilience in the US labor market despite the unexpected contraction in payrolls per the latest BLS data. Employment continues to impress as claims remain at or close to 200K for weeks. A month ago weekly claims fell to 189K the lowest in 60 years. Reaction to today’s claims pushed yields 1 bp higher than prior to 8:30 am ET.
The only thing scheduled the rest of the day is the $44B 7 year note auction at 1 pm.
Economists, bankers, media gathering today in Jackson Hole, Wyoming. There won’t be any news today but tomorrow at 10 am Kevin Warsh will speak. Warsh has said he wants the Fed to be less transparent letting markets decide the direction of rates with less input from Fed officials. He has also made it clear he wants inflation down to 2.0%. Yesterday the PCE core year/year inflation rate at 3.3%; the overall year/year 3.7%.
Kansas City Fed Jeffrey Schmid, host of the Jackson Hole gathering commented this morning he doesn’t see the current level of rates being restrictive on the economy and used the current definition of inflation as being “sticky”.
PRICES @ 10:00 AM
10 year note: 4.66% unch
5 year note: 4.38% +1 bp
2 year note: 4.22% unch
30 year bond: 5.18% +1 bp
30 year FNMA 6.0: @9:30 am 101.45 -1 bp (-4 bp from 9:30 am yesterday)
30 year FNMA 5.5: @9:30 am 99.44 -4 bp (-4 bp from 9:30 am yesterday)
30 year GNMA 6.0: @9:30 am 101.55 +1 bp (-1 bp from 9:30 am yesterday)
Dollar/Yen: 159.40 +0.09 yen
Dollar/Euro: $1.1652 -$0.0002
Dollar Index: 99.10 -0.06
Gold: $4,631.90 -$21.40
Bitcoin: 79,248 +790
Crude Oil: $82.66 +$0.43
DJIA: 53,468 +4
NASDAQ: 26,362 +231
S&P 500: 7703 +27
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.