April 4th, 2022 9:05 AM by Richard Sardella MLO.100007700/NMLS 233568
Not much news over the weekend, this morning the 10 yr. note began unchanged from Friday and MBS prices a little better. This week doesn’t have much data on the schedule, six Fed officials speaking. Any movement in interest rates will occur when news occurs.
Jamie Dimon, JPMorgan Chase & Co. Chief Executive, in his annual letter called for ratcheting up sanctions against Russia in response to its invasion of Ukraine and said the Federal Reserve may ultimately raise interest rates more than the market expects. The U.S. should increase sanctions “in whatever way national security experts recommend to maximize the right outcomes.” The war and the resulting sanctions “will slow the global economy -- and it could easily get worse.” Rates will rise substantially, and the current tightening cycle “is in no way traditional.” “I do not envy the Fed for what it must do next: The stronger the recovery, the higher the rates that follow,” Dimon wrote. “If the Fed gets it just right, we can have years of growth, and inflation will eventually start to recede. In any event, this process will cause lots of consternation and very volatile markets.” His latest annual letter runs 44 pages, shorter than last year’s 65, and describes “challenges at every turn” -- a marked shift in tone from 2021, when he predicted an economic boom that could endure for years.
At 9:30 am ET the DJIA opened -82, NASDAQ +46, S&P unchanged. 10 yr. 2.39% unchanged. FNMA 4.0 30 yr. coupon at 9:30 am +3 bps from Friday’s close and +30 bps from 9:30 am Friday morning.
PRICES @ 10:00 AM
10 yr note: 2.41% +2 bp
5 yr note: 2.57% unch
2 Yr note: 2.45% -1 bp
30 yr bond: 2.48% +4 bp
Libor Rates: 1 mo 0.438%; 3 mo 0.962%; 6 mo 1.489%; 1 yr 2.172% (4/1/22)
30 yr FNMA 4.0: @9:30 101.83 +3 bp (+30 bp from 9:30 am Friday)
30 yr FNMA 4.5: @9:30 103.55 +5 bp (+50 bp from 9:30 am Friday)
30 yr GNMA 4.0: @9:30 101.81 +5 bp (+39 bp from 9:30 am Friday)
Dollar/Yuan: $6.3634 unch
Dollar/Yen: 122.68 +0.15 yen
Dollar/Euro: $1.0987 -$0.0058
Dollar Index: 98.88 +0.25
Gold: $1939.90 +$16.20
Bitcoin: 46,163 -227
Crude Oil: $103.30 +$4.03
DJIA: 34,777 -41
NASDAQ: 14,442 +150
S&P 500: 4561 +15
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.