CHM Blog

This is FOMC week, on Wednesday we will get the policy statement and Fed chief’s press conference.

The 2 year note at 9 am ET up 2 bps, the 10 year up 1 bps, and crude oil up more than $4.00/barrel on news Saudi Arabia has closed its oil pipeline as the Houthis in Yemen continue to attack. Iran said it had destroyed an advanced drone over the Strait of Hormuz.

This weeks Economic Calendar:

• Monday:

Nothing

• Tuesday:

The FOMC meeting begins and Treasury will auction 20 year bonds.

• Wednesday:

Fed chief Warsh’s press conference, MBA apps, August retail sales (month/month +0.8% from -0.6%), August import and export prices (imports month/month +0.4% year/year +6.7%; exports month/month -0.5%), September NAHB housing market index (34 from 35).

• Thursday:

Weekly jobless claims (208K from 206K), August housing starts and permits (starts 1.315 million from 1.239 million, permits 1.405 million from 1.443 million), August pending home sales (+0.4% from -2.3% in July).

• Friday:

August industrial production and capacity utilization (production +0.3%, capacity utilization 76.4% from 76.3%).

Data this week doesn’t carry much weight with the focus on the Fed and the price of crude oil.

PRICES @ 10:00 AM

10 year note: 4.99% +1 bp

5 year note: 4.82% +3 bp

2 year note: 4.66% +3 bp

30 year bond: 5.36% unch

30 year FNMA 6.0: @9:30 am 99.69 -13 bp (-41 bp from 9:30 am Friday)

30 year FNMA 5.5: @9:30 am 97.17 -14 bp (-53 bp from 9:30 am Friday)

30 year GNMA 6.0: @9:30 am 100.06 -18 bp (-36 bp from 9:30 am Friday)

Dollar/Yen: 154.88 +$1.31 yen

Dollar/Euro: $1.1533 -$0.0068

Dollar Index: 99.64 +0.52

Gold: $4,310.90 -$98.00

Bitcoin: 78,127 +873

Crude Oil: $103.69 +$3.64

DJIA: 52,424 -149

NASDAQ: 26,101 -232

S&P 500: 7613 -44

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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