CHM Blog

Overnight the 10 year note increased to 4.51%, +3 bps from yesterday’s US close, by 7 am ET the note traded down 3 bps to 4.46%. MBS prices began the day +7 bps. After the fed made it clear Wednesday inflation will stay higher than previous estimates and yesterday’s decline in weekly jobless claims that added additional concerns of continuing employment gains, today nothing on the calendar but two Fed officials speaking, Lisa Cook a Board governor and Mary Daly SF Fed pres.

This week central banks left interest rates unchanged; our Fed, Bank of Japan today, Australia’s central bank, the Swiss bank, the Bank of England all passed on increases. Citigroup now saying there is only a 35% chance of another interest rate hike from the Fed. European Central Bank policymaker Nagel said that it is unclear if rates have peaked while policymaker Kazaks said that rates will have to remain restrictive for quite a while.

At 9:30 am the DJIA opened -22, NASDAQ +55, S&P +9. 10 year at 9:30 am 4.48% -1 bp. FNMA 6.0 30 year coupon at 9:30 am +12 bps and +12 bps from 9:30 am yesterday.

At 9:45 am the Sept PMI Flash release of the manufacturing and service sector indexes; the composite index at 50.1, manufacturing index 48.9 from 47.8, service sector index 50.2 unchanged from August.

PRICES @ 10:00 AM

10 year note: 4.45% -4 bp

5 year note: 4.57% -6 bp

2 year note: 5.01% -4 bp

30 year bond: 4.54% -3 bp

30 year FNMA 6.0: @9:30 am 99.20 +12 bp (+12 bp from 9:30 am yesterday)

30 year FNMA 5.5: @9:30 am 97.36 +12 bp (+5 bp from 9:30 am yesterday)

30 year GNMA 5.5: @9:30 am 97.72 +10 bp (unch from 9:30 am yesterday)

Dollar/Yuan: $7.3014 -$0.0065

Dollar/Yen: 148.27 +0.69 yen

Dollar/Euro: $10654 -$0.0009

Dollar Index: 105.57 +0.21

Gold: $1945.80 +$6.20

Bitcoin: 26,601 -4

Crude Oil: $91.26 +$1.63

DJIA: 34,083 +13

NASDAQ: 13,278 +54

S&P 500: 4339 +10

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.