CHM Blog

Last Friday the BLS job growth was much stronger than even the most optimistic estimates. The 10 year note +7 bps, the 2 year +12 bps, MBS prices -37 bps. The increase in jobs ties to the earlier report on JOLTS job openings also more than expected, meantime Challenger, Gray and Christmas reported job quits increased. Overall, the employment sector is better than what was anticipated and removes any thoughts the Fed might lower rates later this year, given the data, talk of increasing rates gathered momentum last week. The NASDAQ index fell 1122, the DJIA -695.

The equity markets looking forward to SpaceX going public on Friday, the largest IPO in history, Valued at $1.75 trillion at $135.00/share.

• Monday:

Nothing.

• Tuesday:

May existing home sales (4.08 million from 4.02 million), $58B 3 year note auction, April US trade deficit (-$55.5B from -$60.3B).

• Wednesday:

May CPI (month/month overall +0.5% from +0.6%, year/year 4.2% from 3.8%; ex food and energy month/month 0.3% from +0.3%, year/year 2.9% from 2.8%), $39B 10 year note auction.

• Thursday:

Weekly jobless claims (218K from 225K). May PPI (month/month +0.7% from +1.4%, month/month core +0.4% from +1.0%, year/year core +5.3% from +5.2%), $22 B 30 year bond auction.

• Friday:

University of Michigan consumer sentiment index (46.1 from 44.8).

PRICES @ 10:00 AM

10 year note: 4.54% -1 bp

5 year note: 4.28% unch

2 year note: 4.15% +1 bp

30 year bond: 5.01% unch

30 year FNMA 6.0: @9:30 am 101.97 +14 bp (+10 bp from 9:30 Friday)

30 year FNMA 5.5: @9:30 am 100.10 +15 bp (+7 bp from 9:30 Friday)

30 year GNMA 6.0: @9:30 am 101.72 +11 bp 9+10 bp from 9:30 Friday)

Dollar/Yen: 160.01 -0.31 yen

Dollar/Euro: $1.1546 +$0.0025

Dollar Index: 99.85 -0.21

Gold: $4,367.00 +$1.70

Bitcoin: 63,518 +2225

Crude Oil: $90.61 +$0.07

DJIA: 50,982 +115

NASDAQ: 25,901 +192

S&P 500: 7423 +39

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.

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.