September 28th, 2020 9:55 AM by Richard Sardella MLO.100007700/NMLS 233568
Stock indexes rallied overnight; as usual, the interest rate markets didn’t move. A big week headed our way; the debate tomorrow, politicians are still trying to work out a stimulus bill, key data points, and the September employment report on Friday.
The debate comes as President Trump faces persistent questions, based on his statements about a rigged election, about whether he will accept the results should he lose. Trump’s nomination of Amy Coney Barrett to the U.S. Supreme Court. Trump is using his pick to rally his conservative voter base, while Biden is warning of threats to health care and abortion rights. Biden needs to keep the focus where he wants it: on Trump and his performance in office. Biden will have to give concise answers and avoid some of the verbal mishaps that have plagued him throughout his political career. Biden will make a case about the virus, making sure the public understands that Trump is the one in charge.
At 9:30 am ET, the DJIA opened +430, NASDAQ +166, S&P +66. 10 yr. at 9:30 am ET unchanged at 0.66%. FNMA 2.0 30 yr. coupon at 9:30 am -2 bp from 9:30 and +6 bps from 9:30 am ET Friday. FNMA 2.5 30 yr. coupon unchanged and +1 bp from 9:30 am ET Friday.
The election is approaching rapidly now—still no stimulus but a lot of talk. Dems won’t budge, Pelosi tosses garlands, but won’t budge. Mnuchin, the same thing, saying the Republicans are not willing to increase their $1.1 trillion package, Dems standing pat on their $2.2 trillion package. Meanwhile, Powell and all other Fed officials continue to push for more fiscal assistance to keep the economy from slipping back. It shouldn’t be too surprising that nothing is happening with the election so close now.
We will digest a lot of key data this week after the debate tomorrow evening. The economy is normally the key for voters, but this time may be different for voters, but markets will take in every ounce of data that will flow this week.
Technically it’s the same ole, same ole; no change in interest rates and a choppy stock market. By the end of the week, Senate majority leader McConnell will outline the Senate debate over Barrett’s confirmation.
PRICES @ 10:00 AM ET
10 yr. note: 0.66% unch
5 yr. note: 0.26% unch
2 Yr. note: 0.14% unch
30 yr. bond: 1.41% +1 bp
Libor Rates: 1 mo. 0.146%; 3 mo. 0.217%; 6 mo. 0.271%; 1 yr. 0.369% (9/25/020)
30 yr. FNMA 2.5: @9:30 104.81 unch (+1 bp from 9:30 Friday)
30 yr. FNMA 2.0: @9:30 103.28 -2 bp (+6 bp from 9:30 Friday)
30 yr. GNMA 2.5: @9:30 104.56 +2 bp (+8 bp from 9:30 Friday)
Dollar/Yuan: $6.8149 -$0.0089
Dollar/Yen: 105.51 -0.07 yen
Dollar/Euro: $1.1671 +$0.0040
Dollar Index: 94.25 -0.39
Gold: $1873.60 +$7.30
Crude Oil: $40.04 -$0.21
DJIA: 27,512 +330
NASDAQ: 11,041 +129
S&P 500: 3337.+39
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.
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MLO of record MLO.100007700 / NMLS#233568 / CHM NMLS#127716.