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Daily Market Analysis April 8, 2022

April 8th, 2022 9:21 AM by Richard Sardella MLO.100007700/NMLS 233568


Daily Market Analysis

This morning the 10 yr. note yield began 8 bps higher at 2.70% and MBS prices down 42 bps on the 4.5 FNMA coupon at 8:30 am ET. There are no economic releases today, the week has been absent of any key data other than weekly jobless claims yesterday that were the lowest since 1968. People going back to work at a pace that reflects the end of the pandemic and the big spending that was dished out by the Fed during the pandemic coming to an end.

Russia continued to attack civilians, at least 39 were killed and more than 80 were injured when at least one Russian “Tochka-U” missile with cluster munitions hit the main train station in Kramatorsk, a city about 75 kilometers (47 miles) away from the separatist-held Donetsk. The train station is a path for evacuation offering a chance to about 8,000 people a day -- mainly women and children -- to flee the war. As has been the case there is no noticeable reaction on US interest rates or equities that can be attributed to the war, other than commodities where food prices and energy prices are affected.

Administration officials have said that increasing domestic manufacturing would insulate the U.S. from the kinds of global supply disruptions that occurred during the Covid-19 pandemic and helped fuel inflation.

At 9:30 am the DJIA opened27, NASDAQ -68, S&P -7. 10 yr. at 9:30 am 2.72% +10 bps. FNMA 4.5 30 yr. coupon at 9:30 am -30 bps from yesterday’s close and -33 bps from 9:30 am yesterday.

There isn’t anything to look forward to today for markets. Being Friday some volatility may occur as traders square positions ahead of next week. Yesterday it was the front end that exhibited relative strength and the back end that showed relative weakness. Today it is just the opposite. Selling pressure has been focused on the front of the curve. Next Tuesday and Wednesday fresh reads on inflation with March CPI and PPI.

PRICES @ 10:00 AM

10 yr note: 2.70% +9 bp

5 yr note: 2.74% +3 bp

2 Yr note: 2.50% -1 bp

30 yr bond: 2.71% +7 bp

Libor Rates: 1 mo 0.488%; 3 mo 0.988%; 6 mo 1.503%; 1 yr 2.215% (4/7/22)

30 yr FNMA 4.0: @9:30 100.66 -31 bp (-42 bp from 9:30 yesterday)

30 yr FNMA 4.5: @9:30 102.44 -30 bp (-33 bp from 9:30 yesterday)

30 yr GNMA 4.0: $9:30 101.16 -30 bp (-39 bp from 9:30 yesterday)

Dollar/Yuan: $6.3667 +$0.0062

Dollar/Yen: 124.61 +0.65 yen

Dollar/Euro: $1.0839 -$0.0040

Dollar Index: 100.11 +0.35

Gold: $1941.570 +$3.90

Bitcoin: 42,944 -629

Crude Oil: $96.24 +$0.21

DJIA: 34,596 +13

NASDAQ: 13,731 -166

S&P 500: 44832 -17

About Richard Sardella

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.

About This Report And Disclosure Information

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.

Posted by Richard Sardella MLO.100007700/NMLS 233568 on April 8th, 2022 9:21 AM

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