November 2nd, 2020 9:28 AM by Richard Sardella MLO.100007700/NMLS 233568
Stock indexes and interest rates improved this morning in early trading. At 8:30 am ET, the 10 yr. at 0.8% -3 bp, the DJIA +400.
This week will be one of the most interesting in years. With the election tomorrow and the aftermath of criticisms and possible turmoil in the streets, not likely there will be a clear winner Tuesday night. Biden warned yesterday that he wouldn't let President Donald Trump declare victory in Tuesday's election before the results are clear. "My response is the president is not going to steal this election," Biden told reporters during a campaign stop in Philadelphia.
Market moving news: The FOMC meeting on Wednesday and Thursday, the ECB meeting on Thursday, The Oct employment report data on Friday, both October ISM reports (manufacturing and services).
Europe's virus cases continue to increase, leading to shutdowns in the UK, Germany, and France. Less than a day after Prime Minister Boris Johnson announced a month-long lockdown for England, one of his top ministers and closest allies signaled the measures might have to be extended if they fail to contain the spread of the coronavirus. Since the outbreak began, total cases have now passed 1 million, and the country has suffered more than 46,000 fatalities, the highest death toll in Europe. The UK has more virus infections than when the entire issue began in March, and Germany and France also seeing substantial increases. Scientists are saying that the US is two weeks behind Europe as the spread escalates.
At 10:00 am ET, October ISM manufacturing better than thought at 59.3 from 55.4 and better than forecasts, the best index read since August 2016. Sept construction spending expected +0.9% increased just 0.3%.
MBS prices are holding nicely so far, but at 10:00 am ET they are 5 bps lower than at 9:30 am; 10 yr. fell to 0.84% -4 bps at 9:30 am, at 10:00 am 0.85%.
PRICES @ 10:00 AM ET
10 yr. note: 0.84% -3.5 bp
5 yr. note: 0.37% -1 bp
2 Yr. note: 0.15% -2 bp
30 yr. bond: 1.63% -3 bp
Libor Rates: 1 mo. 0.140%; 3 mo. 0.215%;6 mo. 0.242%; 1 yr. 0.330% (10/30/20)
30 yr. FNMA 2.5: @9:30 103.31 +19 bp (+19 bp from 9:30 Friday)
30 yr. FNMA 2.5: @9:30 104.36 +16 bp (+22 bp from 9:30 Friday)
30 yr. GNMA 2.5: @9:30 104.58 +6 bp (+22 bp from 9:30 Friday)
Dollar/Yuan: $6.6895 -$0.0032
Dollar/Yen: 104.79 +0.12 yen
Dollar/Euro: $1.1632 -$0.0015
Dollar Index: 94.13 +0.09
Gold: $1889.60 +$9.70
Crude Oil: $35.93 +$0.14
DJIA: 26.943 +459
NASDAQ: 11.032 +120
S&P 500: 3320 +50
Richard Sardella has been actively managing and providing services in the mortgage industry for over 27 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.