January 21st, 2020 8:39 AM by Richard Sardella MLO.100007700/NMLS 233568
Stocks are under pressure early this morning, and interest rates a little better. At 8:00 am ET, the 10 yr -3 bps from last Friday to 1.79%.
The financial world and some celebrities gathered in Davos Switzerland this week for the World Economic Forum. The gathering will be closely watched to see how the global elite aims to tackle issues they helped create. President Trump spoke this morning, the same day his trial begins in the US Senate. In his speech, he lauded his economic achievements and said the US is "winning again like never before."
This week, the economic calendar is about as thin as it can get. The one report we'll be paying close attention to is Dec. existing home sales. To fill the void, we have the impeachment trial.
The circus will begin at 1 pm ET. The first day will be spent debating Majority Leader Mitch McConnell's proposed rules for the proceedings, followed by a series of public votes on many expected Democratic amendments. Two calendar days and 24-floor hours each for the Houses and President Trump's defense to make their case, a compressed schedule that accelerates the timetable for a trial.
The International Monetary fund on Monday predicted that US growth would slow to 2% this year and 1.7% next year. To the contrary, Treasury's Mnuchin said that he thought some projections for US economic growth this year were too low as 2019 figures were dragged down by one-off items, including Boeing's grounding of the 737 Max.
At 9:30 am ET the DJIA opened -54, NASDAQ -27, S&P -9. 10 yr 1.80% -2 bp. MBS prices +5 bps from Friday's close and +16 bps from 9:30 Friday.
The remainder of the day will be quiet, not expecting any movement of consequence in the interest rate arena. This week with not much economic data focus, the markets will focus on impeachment. No one is expecting any change in the universal belief that the president will be acquitted, but it will be a show not likely seen again.
PRICES @ 10:00 AM ET
10 yr. note: 1.79% -3 bp
5 yr. note: 1.58% -4 bp
2 Yr. note: 1.52% -4 bp
30 yr. bond: 2.25% -4 bp
Libor Rates: 1 mo. 1.653%; 3 mo. 1.802%; 6 mo. 1.829%; 1 yr. 1.924% (1/20/20)
30 yr. FNMA 3.0: @9:30 102.72 +5 bp (+16 bp from 9:30 Friday)
15 yr. FNMA 3.0: @9:30 102.67 +3 bp (+11 bp from 9:30 Friday)
30 yr. GNMA 3.0: @9:30 102.44 +9 bp (+15 bp from 9:30 Friday)
Dollar/Yuan: $6.9038 +$0.0369
Dollar/Yen: 110.04 -0.14 yen
Dollar/Euro: $1.1106 +$0.0011
Dollar Index: 97.49 -0.11
Gold: $1550.00 -$10.30
Crude Oil: $58.32 -$0.22
DJIA: 29,315.40 -32.70
NASDAQ: 9381.42 -7.52
S&P 500: 3322.60 -7.02
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.