CHM Blog

Markets started generally unchanged ahead of Jerome Powell’s speech beginning at 10:05 am ET. Last year Powell dropped a bomb on markets with very strong language that the Fed was going headfirst into fighting inflation. His firm stance took markets by surprise with his tone. This year the general view is a more relaxed Powell although we don’t expect him to take any victory laps over inflation, although inflation has come down over the last year, recent data suggests inflation may be difficult to break, oil prices increasing, wages holding firm, unemployment at 3.6% suggests full employment based on old definitions. Over the last couple of months investors and traders have come to the consensus inflation will not get to 2.0% for much longer than had been thought . Equally, a soft landing with no recession is also being baked in.

At 9:30 am the DJIA opened +178, NASDAQ +65, S&P +19. 10 year at 9:30 am 4.25% +1 bp. FNMA 6.0 30 year coupon -2 bps and -10 bp from 9:30 am yesterday.

Powell speaks at 10:05 am eastern.

PRICES @ 10:00 AM

10 year note: 4.25% +1 bp

5 year note: 4.44% +2 bp

2 year note: 5.06% +5 bp

30 year bond: 4.30% unch

30 year FNMA 6.0: @9:30 am 99.46 -2 bp (-10 bp from 9:30 am yesterday)

30 year FNMA 5.5: @9:30 am 97.83 -3 bp (-10 bp from 9:30 am yesterday)

30 year GNMA 5.5: @9:30 am 98.13 -4 bp (-14 bp from 9:30 am yesterday)

Dollar/Yuan: $7.2885 +$0.0107

Dollar/Yen: 146.18 +0.34 yen

Dollar/Euro: $1.0804 -$0.0006

Dollar Index: 104.11 +0.13

Gold: $1941.20 -$5.90

Bitcoin: 26,086 +90

Crude Oil: $79.89 +$0.84

DJIA: 34,213 +111

NASDAQ: 13,547 +82

S&P 500: 4392 +16

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.