January 23rd, 2024 9:32 AM by Richard Sardella MLO.100007700/NMLS 233568
In the absence of news, the markets opened flat this morning. The 10 year note at 7:30 am ET +2 bps from yesterday at 4.12%, MBS prices started -6 bps.
The calendar is empty today, no data. There aren’t any scheduled economic reports until Thursday and Friday.
The Bank of Japan met and kept its key rate at -0.1%. The Bank an outlier compared to other central banks, The ECB, the Fed have implied rate cuts will be coming this year.
The US and UK launched more airstrikes against the Houthis. Support for the attacks came from Australia, Bahrain, Canada, and the Netherlands. They were the most significant, according to the US, since the original ones earlier this month.
Bill Gross, formerly CEO of PIMCO and known then as the Bond King, warning the Fed to stop winding down its balance sheet and begin lowering rates soon to avoid a recession.
At 9:30 am the DJIA opened -34, NASDAQ +34, S&P +8. 10 year at 9:30 am 4.13% +3 bps. FNMA 6.0 30 year coupon at 9:30 am -7 bps from yesterday’s close and -16 bps from 9:30 am yesterday.
Treasury will begin this week’s auctions with $60B of 2 year notes this afternoon at 1 pm.
Investors and traders still chewing on the comments from central bankers last week in Davos, most comments from key central banks were tilted toward cooling the idea that lower rates are a certainty. So far, the remarks haven’t hurt equity markets, rates have increased but we see that more as a technical correction after the rapid fall in rates since the end of October. Rate cuts are still on the table, it’s just the timing.
Nothing today, markets awaiting weekly jobless claims, December durable goods orders, Q4 advance GDP on Thursday. Friday inflation (PCE).
Based on averages, the 10 year note yield is unchanged over the last 20 day, unchanged over the last 40 days and unchanged over the last 200 day at 4.07%.
PRICES @ 10:00 AM
10 year note: 4.14% +4 bp
5 year note: 4.06% +2 bp
2 year note: 4.41% +4 bp
30 year bond: 4.37% +5 bp
30 year FNMA 6.0: @9:30 am 100.97 -7 bp (-16 bp from 9:30 am yesterday)
30 year FNMA 6.5: @9:30 am 102.09 -4 bp (-15 bp from 9:30 am yesterday)
30 year GNMA 5.5: @9:30 am 100.17 -2 bp (-13 bp from 9:30 am yesterday)
Dollar/Yuan: $7.1463 -$0.0478
Dollar/Yen: 148.31 +0.20 yen
Dollar/Euro: $1.0853 -$0.0032
Dollar Index: 103.53 +0.20
Gold: $2,025.30 +$3.10
Bitcoin: 38,747 -1,105
Crude Oil: $74.41 -$0.78
DJIA: 37,937 -65
NASDAQ: 15,395 +35
S&P 500: 4855 +5
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.