CHM Blog

Stock index futures prior to the 9:30 am ET open were fractionally better, generally unchanged. Over the weekend the Financial Times reported NVidia and AMD have agreed to give the US government 15% of revenues from chip sales to China, aiming to secure export licenses for semiconductors. Investors see the move as broadly positive for both NVidia and AMD.

There are no economic releases today in a week full of key data. The current outlook for a Fed rate cut at the September FOMC meeting stands at 88% and another cut by the end of the year. The presumed cut at the September meeting is presently fully discounted. Any increase in inflation above what the current forecasts are won’t likely derail a cut in September. Given increasing numbers of Fed officials are falling in line with pressure; further cuts still depend on inflation and employment.

At 9:30 am the DJIA opened +16, NASDAQ -2, S&P +2. 10 year at 9:30 am 4.28% -1 bp. FNMA 6.0 30 year coupon at 9:30 am +9 bps from Friday and +3 bps from 9:30 am Friday morning.

There isn’t anything on the schedule today; traders will focus on any news coming from the White House or any events not anticipated.

PRICES @ 10:00 AM

10 year note: 4.28% -1 bp

5 year note: 3.84% unch

2 year note: 3.77% unch

30 year bond: 4.84% -1 bp

30 year FNMA 6.0: @9:30 am 101.83 +9 bp (+3 bp from 9:30 am Friday)

30 year FNMA 6.5: @9:30 am 103.39 unch (unch from 9:30 am Friday)

30 year GNMA 6.0: @9:30 am 101.78 +4 bp (+14 bp from 9:30 am Friday)

Dollar/Yen: 147.89 +0.16 yen

Dollar/Euro: $1.1624 -$0.0018

Dollar Index: 98.44 +0.26

Gold: $3,412.30 -$78.80

Bitcoin: 120,174 +1496

Crude Oil: $64.11 +$0.23

DJIA: 44,157 -19

NASDAQ: 21,462 +12

S&P 500: 6394 +5 bp

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.

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