CHM Blog

Daily Market Analysis February 22, 2022

February 22nd, 2022 9:52 AM by Richard Sardella MLO.100007700/NMLS 233568


Daily Market Analysis

Yesterday Putin ordered soldiers into two separatist regions of Ukraine after recognizing their independence. The move threatens to scuttle negotiations with the West over the future security of Eastern Europe and trigger retaliatory sanctions. Early this morning, Germany said it put on hold indefinitely plans to certify the Nord Stream 2 pipeline, which had been set to boost Russian gas volumes to Germany, in retaliation for the military move by Russia. Meanwhile the EU was considering sweeping sanctions on Russian entities, including a ban on the purchase of Russian debt and sanctions against all members of Russia’s Duma, a key lawmaking body, according to diplomats. After an extensive speech yesterday, it became clear that Putin wants to roll back borders that took land away when Russia collapsed in 1991 and again in 2014 and 2015 the Minsk accords. The accords sought to halt the armed conflict that broke out in eastern Ukraine in 2014. The country’s pro-Russia leader Viktor Yanukovych had just been ousted by mass protests in Kyiv, triggered by his decision – under pressure from Putin – to renege on a trade pact with the European Union.

At 9:00 am ET Dec FHFA home price index +1.2% on +1.0% expected.

At 9:30 am the DJIA opened -176, NASDAQ -128, S&P -20. 10 yr at 9:30 am 1.95% +2 bps. FNMA 3.5 30 yr coupon at 9:30 am -6 bps from Friday and -3 bps from 9:30 am Friday.

At 10:00 am Feb consumer confidence index 110.5, slightly better than 110.0 Detail this afternoon.

At 1:00 pm Treasury will auction $52B of 2 yr notes.

Yesterday gold jumped $15.00, today backing off; crude oil hit $96.00, today also backing off. The tension in Ukraine appears to be lessening, at least based on traders’ activity.

Interest rate markets continue to keep an eye on Ukraine but more importantly the Fed and its intentions to increase rates in March. After safe haven buying dropped the 10 yr from 2.05% to 1.93 (last Friday) rates are edging higher this morning.

PRICES @ 10:00 AM

10 yr note: 1.95% +2 bp

5 yr note: 1.86% +4 bp

2 Yr note: 1.53% +6 bp

30 yr bond: 2.26% +2 bp

Libor Rates: 1 mo. 0.162%; 3 mo. 0.464%; 6 mo. 0.758%; 1 yr. 258% (2/21/22)

30 yr FNMA 3.0: @9:30 100.41 -9 bp (-3 bp from 9:30 am Friday)

30 yr FNMA 3.5: @9:30 102.56 -6 bp (-3 bp from 9:30 am Friday)

30 yr GNMA 3.0: @9:30 100.89 -11 bp (unch from 9:30 am Friday)

Dollar/Yuan: $6.3240 -$0.0113

Dollar/Yen: 115.22 +0.48 yen

Dollar/Euro: $1.1345 +$0.0034

Dollar Index: 96.01 -0.07

Gold: $1903.30 +$3.50

Bitcoin: 38,184 -43

Crude Oil: $93.50 +$2.34

DJIA: 33,888 -191

NASDAQ: 13,538 -11

S&P 500: 4347 -1

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 February 22nd, 2022 9:52 AM

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