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Daily Market Analysis September 29, 2020

September 29th, 2020 10:59 AM by Richard Sardella MLO.100007700/NMLS 233568

Daily Market Analysis

Markets early this morning were quiet, no news of consequence, and the day should be quiet with the debate this evening. Of course, when looking at interest rates, that market is in a coma. Stock indexes had a decent day yesterday following last Friday's improvements. The 10 yr. at 9:00 am ET .65% -1 bps, stock indexes slightly lower in futures trading.

At 8:30 am ET, August wholesale inventories increased 0.5% against -0.1% forecast; it's an advance read so meaningless in the near term; August advance retail inventories +0.8%.

More stimulus? Not likely. House Democrats released a $2.2 trillion coronavirus relief package that would restore $600 weekly jobless benefits, a last-ditch effort to revive stalled talks with the White House. The House may vote by the end of the week before leaving Washington for the October break. More talks are scheduled today between Pelosi and Mnuchin. Pelosi initially resisted voting on the bill, pointing out that the House had already passed a roughly $3.5 trillion bill in mid-May and was still trying to negotiate with the administration on a path forward. The White House wants a slimmed-down package totaling $1.1 trillion, saying that should be enough as worries increase over the debt the virus has created.

At 9:00 am ET, the July Case/Shiller house price index for 20 cities; expected +0.2% after being unchanged in June, the price index increased 0.6%; yr./yr. the price index was thought to be +3.7%, as released +3.9%.

At 9:30 am ET, the DJIA opened -38, NASDAQ +8, S&P -1. 10 yr. note at 9:30 am 0.65% -1 bp. FNMA 2.0 3 yr. coupon at 9:30 am -2 bps from yesterday's close, and +11 bps from 9:30 am yesterday; the 2.5 FNMA coupon at 9:30 am unchanged from yesterday and +3 bps from 9:30 yesterday.

At 10:00 am ET, the Conference Board released its consumer confidence index, expected at 90.1 from 84.8 in August; as released, the index jumped to 101.8. The details will be in the afternoon report—no reaction to the stronger index.

PRICES @ 10:00 AM ET

10 yr. note: 0.65% -1 bp

5 yr. note: 0.26% unch

2 Yr. note: 0.14% +1 bp

30 yr. bond: 1.41% -1 bp

Libor Rates: 1 mo. 0.146%; 3 mo. 0.220%; 6 mo. 0.269%; 1 yr. 0.365% (9/28/20)

30 yr. FNMA 2.0: 103.39 +5 bp (+11 bp from 9:30 yesterday)

30 yr. FNMA 2.5: 104.84 unch (+3 bp from 9:30 yesterday)

30 yr. GNMA 2.5: 104.63 -9 bp (+7 bp from 9:30 yesterday)

Dollar/Yuan: $6.8145 +$0.0026

Dollar/Yen: 105.60 +0.08 yen

Dollar/Euro: $1.1725 +$0.0059

Dollar Index: 93.94 -0.34

Gold: $1891.80 +$9.50

Crude Oil: $39.77 -$0.85

DJIA: 27,539 +9

NASDAQ: 11,136 +18

S&P 500: 3355 +4

About Richard Sardella

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.

About This Report And Disclosure Information

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.

Posted in:General
Posted by Richard Sardella MLO.100007700/NMLS 233568 on September 29th, 2020 10:59 AM

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