ARCHIVED BLOG POSTS
2009
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As expected, the Fed made no change in the fed funds rate. While there was much disagreement about what the statement would say, in general it contained the minimum number of surprises. Notably, the end date for the $1.25 trillion MBS purchase program was moved from the end of this year to the en...
09/23/2009
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Tomorrow, there will be a 5-yr auction at 1:00 et. The Fed announcement will be released around 2:15 et. No change in rates is expected, but the Fed's announcement may contain important information on the timing of future rate hikes and the status of the MBS purchase program. The statement may ha...
09/22/2009
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MBS prices are up +4/32 (FNMA 30-yr 4.5 at 100.59), above 9:45 et pricing of -1/32. No economic data came out today. The results for the 2-yr Treasury auction were close to average overall. The bid-to-cover ratio was a high 3.23, and foreign investors purchased 45% of the total. MBS prices moved ...
09/22/2009
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MBS prices are flat (FNMA 30-yr 4.5 at 100.44), below the initial price level at +4/32. Leading Indicators came in close to expectations and had little impact. In the middle of the session, MBS prices moved lower on light volume. The Dow is down 50 points to 9778. Tomorrow, there will be a 2-yr a...
09/21/2009
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The biggest economic news this week will be Wednesday's FOMC meeting. No change in rates is expected, but the Fed's announcement may contain important information on the timing of future rate hikes and the status of the MBS purchase program. Data from the housing sector will come out on Thursday ...
09/21/2009
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The economy is currently experiencing moderate economic growth with low inflation. In a speech on Tuesday, Fed Chief Bernanke indicated that the recession is "very likely over". Retail Sales and Industrial Production showed nice increases this week. Housing Starts, Building Permits, and Homebuild...
09/18/2009
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MBS prices are down -7/32 (FNMA 30-yr 4.5 at 100.18), below the initial price level at -1/32. No economic data came out today, but MBS markets drifted lower. The Dow is up 30 points at 9817. For the week, MBS prices fell about -8/32. A wide range of major economic data released during the week ...
09/18/2009
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The Fed purchased $25.5 billion in agency MBS during the weekly period ending September 16, from $18.8 billion the prior week. Freddie Mac reported that average mortgage rates fell in the week through September 17, with 30-yrs hitting 5.04%, from 5.07% the prior week. The Dow was down 10 points....
09/17/2009
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MBS prices are up +11/32 (FNMA 30-yr 4.5 at 100.26), above the initial price level at +2/32, and at the high for the day. A wide range of economic news came out today. Housing Starts and Jobless Claims came in close to expectations. The Philly Fed index exceeded the consensus forecast, but the mo...
09/17/2009
As expected, Core CPI rose at the lowest annual rate since February 2004, and Industrial Production matched the consensus increase. The Dow was up 100 points to a new high for the year at 9791. Tomorrow, Housing Starts, Jobless Claims, and Philly Fed will be released. The Treasury will announce t...
09/16/2009
