September 25th, 2020 10:39 AM by Richard Sardella MLO.100007700/NMLS 233568
August durable goods orders were released at 8:30 am ET: new orders +0.4% were lower than 1.5% estimates, excluding transportation orders +0.4% compared to 1.2% expected. July orders revised from +11.2% to 11.7%, ex-transportation to 3.2% from 2.4%. However, core capital goods (nondefense ex-aircraft) did better, expected at +1.7%, as released +1.8% and July revised to +2.5% from 1.9% originally released. Excluding defense, orders were up 0.7% in August. Meanwhile, orders for computers and electronic products, machinery, and transportation equipment all rose solidly in August, helping drive orders' overall gain. Orders for goods that will last three years, up for the fourth consecutive month. Surveys from data providers IHS Markit and the Institute for Supply Management showed factory activity grew in August, with gains in output and improvements in employment levels. A preliminary measure of manufacturing activity in September also accelerated, according to IHS Markit.
At 9:30 am ET, the DJIA opened -80, NASDAQ +22, S&P -6. 10 yr. note at 9:30 am 0.66% -1 bp. FNMA 2.0 coupon at 9:30 am +8 bps from yesterday's close, and +11 bps from 9:30 am yesterday. FNMA 2.5 coupon at 9:30 am +13 bps from yesterday's close, and +11 bps from 9:30 am yesterday.
MBS markets are having a strong week; the spread between the rate for 30 yr. mortgages and the 10 yr. notes narrowed this week after widening for months.
There is nothing on the schedule for the rest of the session.
Mortgage rates are edging lower this week, narrowing the widespread that developed back in the spring while the 10 yr. note has had little to no movement for months.
PRICES @ 10:00 AM ET
10 yr. note: 0.66% -1 bp
5 yr. note: 0.26% -1 bp
2 Yr. note: 0.13 -4 bp
30 yr. bond: 1.40% -1 bp
Libor Rates: 1 mo. 0.144%; 3 mo. 0.233%; 6 mo. 0.273%; 1 yr. 0.372% (9/24/20)
30 yr. FNMA 2.5: @ 9:30 104.81 +13 bp (+11 bp from 9:30 yesterday)
30 yr. FNMA 2.0: @9:30 103.22 +8 bp (+11 bp from 9:30 yesterday)
30 yr. GNMA 2.5: @9:30 104.50 +3 bp (+22 bp from 9:30 yesterday)
Dollar/Yuan: $6.8281 unch
Dollar/Yen: 105.59 +0.18 yen
Dollar/Euro: $1.1634 -$0.0036
Dollar Index: 94.62 +0.27
Gold: $1864.60 -$12.30
Crude Oil: $39.94 -$0.37
DJIA: 26,791 -25
NASDAQ: 10,695 +26
S&P 500: 3246 unch
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.