September 2nd, 2025 8:46 AM by Richard Sardella MLO.100007700/NMLS 233568
A federal appeals court voted 7-4 that most all the President's tariffs are illegal, saying only Congress has the power to launch sweeping tariffs. The decision will go the Supreme Court but if it stands the US will have to refund tariffs that have been collected. If the current ruling stands the impact of more treasury borrowing will push rates higher.
At 9:30 am ET the DJIA opened -562, NASDAQ -374, S&P -88. 10 year 4.29% +6 bp. FNMA 6.0 30 year coupon at 9:30 am -11 bp from Friday’s close and -3 bp from 9:30 am Friday.
At 9:45 am August PMI manufacturing index thought to be at 53.3 reported at 53.0.
At 10 am ISM manufacturing index was expected to be 48.7 and was reported as such.
Once again, the bellwether 10 year note, regardless of the reason, has failed at 4.20%. On any negative news the note is easily turned around from any improvements.
The key data this week is the August employment report on Friday.
PRICES @ 10:00 AM
10 year note: 4.29% +5 bp
5 year note: 3.75 %+5 bp
2 year note: 3.67% +5 bp
30 year bond: 4.97% +4 bp
30 year FNMA 6.0: @9:30 am 102.05 -11 bp (-3 bp from 9:30 am Friday)
30 year FNMA 6.5: @9:30 am 103.53 -9 bp (-7 bp from 9:30 am Friday)
30 year GNMA 6.0: @9:30 am 101.90 -8 bp (+5 bp from 9:30 am Friday)
Dollar/Yen: 148.44 +1.26 yen
Dollar/Euro: $1.1644 -$0.0068
Dollar Index: 98.30 +0.53
Gold: $3,550.60 +$34.50
Bitcoin: 110,988 +1775
Crude Oil: $64.75 +$0.74
DJIA: 45,237 -307
NASDAQ: 21,277 -178
S&P 500: 6408 -52
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.