CHM Blog

This morning the stock indexes continue marching to new record highs.

This week it’s the FOMC that begins Tuesday. Powell has turned more attention to the weakening employment market and a little less toward inflation. Last week’s CPI inflation showed a slight decrease, the employment situation is kind of a toss-up since there hasn’t been any data since the shutdown.

Today Treasury will conduct two auctions, $69B 2 year note at 11:30 am ET and $70B of 5 year notes at 1 pm. September durable goods was on the calendar today but won’t be reported, new orders expected to have declined to +0.1% after increasing 2.9% in August. Thursday Q3 advance GDP, the first of three releases over the nest two months. The estimates at +3.0% growth down from a surprising 3.8% growth in Q2. Weekly jobless claims on Thursday, estimates 235K generally steady over the last three weeks. Friday September PCE inflation, the Fed’s favorite, month/month overall +0.3% unchanged from August, year/year overall +2.8% up from 2.7% in August; the core month/month +0.3% up from +0.2% in August, year/year core 2.9% unchanged from August.

At 11:30 am $69B 2 year note auction, at 1 pm $70B 5 year note auction.

PRICES @ 10:00 AM

10 year note: 4.03% +3 bp

5 year note: 3.64% +4 bp

2 year note: 3.52% +3 bp

30 year bond: 4.61% +2 bp

30 year FNMA 5.5: @9:30 am 101.21 -4 bp (unch from 9:30 am Friday)

30 year FNMA 6.0: @9:30 am 102.36 +2 bp (-3 bp from 9:30 am Friday)

30 year GNMA 5.5: @9:30 am 100.97 unch (+1 bp from 9:30 am Friday)

Dollar/Yen: 153.18 +0.32 yen

Dollar/Euro: $1.1637 +$0.0006

Dollar Index: 98.89 -0.07

Gold: $4,039.90 -$97.90 (optimism over trade deals in Asia)

Bitcoin: 114,847 +1248

Crude Oil: $61.63 +$0.13

DJIA: 47,460 +253

NASDAQ: 23,550 +345

S&P 500: 6854 +63

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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MLO of record MLO.100007700 / NMLS#233568 / CHM NMLS#127716.