CHM Blog

It is another quiet start today, the 10 year at 8 am ET -1 bps, MBS price +2 bps. The FOMC meeting begins today, tomorrow is where the action re-emerges with the policy statement, Fed projections and Powell’s press conference. By 9 am the 10 year note declined 2 bps and MBS prices increased 11 bps.

Good news for the housing industry this morning, February starts and permits were both stronger than forecasts. Starts expected at 1.449 million increased to 1.521 million and January revised from 1.331 million to 1.374 million. Building permits expected at 1.500 million increased to 1.518 million and January revised from 1.470 million to 1.489 million.

In global news, Japan as expected abandoned its negative rate policy at its BofJ meeting. It is the first rate increase for Japan in seventeen years and moves Japan into conventional monetary policy after the country is finally leaving behind years of deflation and economic stagnation. Short term rates now 0.0% to +0.1%. Japan trying to increase its inflation to 2.0% while the US and ECB trying to lower inflation to 2.0%. The BofJ will stop buying ETFs and REITS.

At 9:30 am the DJIA began +3, NASDAQ -88, S&P -11. 10 year note 4.31% -2 bps. FNMA 6.0 30 year coupon at 9:30 am +11 bps from yesterday’s close and +9 bps from 9:30 am yesterday.

At 1 pm Treasury will auction $13B of 20 year bonds.

Between now and tomorrow at 2 pm there isn’t any scheduled news or reports that will have any bearing. At 2 pm tomorrow the action will commence with the FOMC policy statement and the Fed’s quarterly forecasts, the Powell at 2:30 pm.

PRICES @ 10:00 AM

10 year note: 4.31% -2 bp

5 year note: 4.32% -2 bp

2 year note: 4.71% -3 bp

30 year bond: 4.46% +1 bp

30 year FNMA 6.0: @9:30 am 100.44 +11 bp (+9 bp from 9:30 am yesterday)

30 year FNMA 6.5: @9:30 am 101.78 +4 bp (+4 bp from 9:30 am yesterday)

30 year GNMA 5.5: @9:30 am 99.20 +13 bp (+8 bp from 9:30 am yesterday)

Dollar/Yuan: $7.1991 unch

Dollar/Yen: 150.65 +1.49 yen

Dollar/Euro: $1.0854 -$0.0018

Dollar Index: 103.39 +0.49

Gold: $2,157.40 -$6.90

Bitcoin: 63,112 -3847

Crude Oil: $83.11 +$0.39

DJIA: 38,860 +70

NASDAQ: 15,988 -115

S&P 500: 5136 -13

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.