ARCHIVED BLOG POSTS
2009
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MBS prices are down -9/32 (FNMA 30-yr 4.5 at 99.69), above the initial price level at -15/32. It was another very volatile session, as MBS prices climbed to nearly unchanged levels in the middle of the day before moving lower again. The Chicago PMI index came in slightly higher than expected, whi...
06/30/2009
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MBS prices are up +9/32 (FNMA 30-yr 4.5 at 99.97), below the initial price level at +8/32. No economic data came out today, but it was a volatile session. MBS markets received an early boost from China's announcement that it will not make any sudden changes to its foreign reserves policy, meaning...
06/29/2009
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Next week, the important Employment report will come out on Friday. As usual, this data on the number of jobs, the Unemployment Rate, and wage inflation will be the most highly anticipated economic data of the month. Early estimates are for a loss of about 370K jobs in June. Before the Employment...
06/26/2009
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With major economic data, large Treasury auctions, and a Fed meeting on the schedule, it was a busy week for mortgage markets. In the end, it was the Treasury auctions which had the greatest impact on mortgage rates. Demand was very strong at the auctions, which pushed mortgage rates lower. Wedne...
06/26/2009
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MBS prices are down -5/32 (FNMA 30-yr 4.5 at 99.69), below the initial price level at -2/32. MBS prices remained in a range today. The economic data had little impact. Technically the price is trapped between strong resistance at the 50 day moving average and strong support by the 200 day movin...
06/26/2009
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MBS prices are up +27/32 (FNMA 30-yr 4.5 at 99.88), way above the initial price level at +7/32. A number of events helped MBS markets today. Jobless Claims came in weaker than expected. Fed Chief Bernanke performed well in explaining the Fed's actions regarding the merger of Bank of America and M...
06/25/2009
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As expected, the Fed made no change in the fed funds rate. Its statement revealed no significant shifts in policy. In particular, there was no change in the timing or the quantity of MBS and Treasury purchases. It contained no discussion about exit strategies. The statement continued to indicate ...
06/24/2009
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MBS prices are unchanged (FNMA 30-yr 4.5 at 99.03), above the initial price level at -2/32. Despite a large batch of major economic news, MBS prices were little changed. Durable Orders came in stronger than expected. May New Home Sales declined slightly from April and fell short of the consensus ...
06/24/2009
May Existing Home Sales rose 2.4% to an annual rate of 4.77 million units, close to the consensus forecast of 4.82 million units. It was the first time since September 2005 that Existing Home Sales increased for two months in a row. The inventory of unsold homes declined to a 9.6-month supply fro...
06/23/2009
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MBS prices are up 1/32 (FNMA 30-yr 4.5 at 99.03), above the initial price level at -4/32. MBS markets rallied a little after the Existing Home Sales data came in slightly below expectations. Demand was very strong for the 2-yr Treasury auction, but there was little impact on MBS markets. The Dow...
06/23/2009
