CHM Blog

Markets were roiled yesterday on progress with China on trade, both countries agreed to cut tariffs for 90 days to pursue more direct specifics. The 10 year note yield jumped 9 bps, the 2 year note +12 bps, MBS prices -18 bps. The stock indexes powered forward, the DJIA up 1200, NASDAQ +780, S&P 1185. Gold lost $110.00, crude oil +2.80, the dollar reversed its recent decline.

April consumer prices CPI were less than estimates; month/month expected +0.3% increased 0.2%, year/year at +2.4% reported +2.3%, the smallest since February 2021 Core CPI month/month thought to be +0.3% reported +0.2%. Year/year core held unchanged at +2.8% as expected, is holding at the slowest pace since the spring 2021 inflation breakout. Food prices were down 0.1%, with food-at-home (groceries) dropping 0.4%. It is good news although the reaction has been somewhat muted; the data doesn’t encourage increased belief the Fed will lower rates. We will get another intake on Thursday when Powell speaks again.

At 9:30 am ET the DJIA opened -152, NASDAQ +57, S&P +4. 10 year note 4.46% -2 bps; earlier this morning the 10 year note traded at 4.43%. FNMA 6.0 30 year coupon at 9:30 am +12 bps from yesterday’s close and -8 bps from 9:30 am yesterday.

There isn’t anything else scheduled today.

PRICES @ 10:00 AM

10 year note: 4.47% unch

5 year note: 4.09% -3 bp

2 year note: 3.99% -4 bp

30 year bond: 4.92% unch

30 year FNMA 6.0: @9:30 am 100.85 +12 bp (+8 bp from 9:30 am yesterday)

30 year FNMA 6.5: @9:30 am 102.56 +12 bp (+7 bp from 9:30 am yesterday)

30 year GNMA 6.0: @9:30 am 100.84 +11 bp (+10 bp from 9:30 am yesterday)

Dollar/Yen: 147.81 -0.66 yen

Dollar/Euro: $1.1143 +$0.0056

Dollar Index: 101.33 -0.45

Gold: $3,240.80 +$12.80

Bitcoin: 103,617 +1796

Crude Oil: $62.58 +$0.63

DJIA: 42,263 -147

NASDAQ: 18,877 +169

S&P 500: 5870 +26

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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MLO of record MLO.100007700 / NMLS#233568 / CHM NMLS#127716.