February 6th, 2023 9:36 AM by Richard Sardella MLO.100007700/NMLS 233568
Huge job increases in January sent MBS prices down. This morning it continued, the 10 year began the session at 3.61% +7 bps from Friday’s 14 bp increase. The 10 never had a chance under 3.40% and with Fed speakers unleashed after being locked down for a week prior to the FOMC, and central banks continuing to chide markets. Increasing but still in tight ranges, the 10 at 3.61% at the high of its 20 bp range (3.40% - 3.60%). After three weeks in a tight range, the 120 this morning is the highest since Jan 11th. Stock indexes in futures markets were lower following declines last Friday.
Tomorrow Fed chair Powell will sit with David Rubenstein chair at the NY Economic Club for a discussion, after last week’s FOMC and the January increase in jobs there is a lot to chew on. Ahead of that interest rates and MBSs don’t have much chance improving. Powell is relentless and will stick with his inflation fight even though the markets are believing the Fed is coming to an end of tightening.
This week has very little economic news, but three treasury auctions. Nothing today. The treasury auctions have met with very strong demand over the last month, this week may not be as aggressive bidding with the dollar strength increasing.
At 9:30 am ET the DJIA opened -112, NASDAQ -100, S&P -21. 10 year at 9:30 am 3.62% +8 bps. FNMA 5.5 30 year coupon at 9:30 am -55 bps from Friday’s close and -67 bps from 9:30 am Friday.
PRICES @ 10:00 AM
10 yr note: 3.62% +8 bp
5 yr note: 3.77% +11 bp
2 Yr note: 4.42% +10 bp
30 yr bond: 3.66% +3 bp
Libor Rates: 4.572%; 3 mo 4.834%; 6 mo 5.057%; 1 yr 5.251% (2/3/23)
30 yr FNMA 6.0: @9:30 am 102.05 -37 bp (-51 bp from 9:30 am Friday)
30 yr FNMA 5.5: @9:30 am 100.81 -55 bp (-66 bp from 9:30 am Friday)
30 yr GNMA 5.5: @9:30 am 101.06 -41 bp (-46 bp from 9:30 am Friday)
Dollar/Yuan: $6.7853 +$0.0102
Dollar/Yen: 132.51 +1.33 yen
Dollar/Euro: $1.0755 -$0.0044
Dollar Index: 103.38 +0.46
Gold: $1883.30 +$6.70
Bitcoin: 22,847 -49
Crude Oil: $73.59 +$0.20
DJIA: 33,777 -149
NASDAQ: 11,958 -49
S&P 500: 4118 -18
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.