ARCHIVED BLOG POSTS
2009
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MBS prices are up +9/32 (FNMA 30-yr 4.5 at 100.47), above the initial price level at +4/32, and at the high for the day. The Chicago PMI manufacturing index rose to 50, which was higher than expected. A decline in the stock market lifted MBS markets. Oil prices fell $3 per barrel to $70 per barr...
08/31/2009
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This 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 225K jobs in August. Before the Employme...
08/31/2009
Last week, the Fed increased its weekly mortgage-backed securities (MBS) purchases to about $25 billion, and it maintained that level this week. Prior to that, the Fed had purchased roughly $20 billion per week for a couple of months. The current pace would lead to total purchases of the authoriz...
08/28/2009
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There were few surprises in the economic data released this week, and the record $109 billion in Treasury auctions went smoothly. As a result, it was a quiet week for mortgage markets. This week's economic data showed signs that the economy is gradually improving, while inflation is not a concern...
08/28/2009
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MBS prices are up +2/32 (FNMA 30-yr 4.5 at 100.06), above the initial price level at -6/32, and at the high for the day. Today's economic data came in close to expectations and had little impact. The Dow fell 40 points ending eight consecutive days of gains. For the week, MBS prices rose about +...
08/28/2009
Demand for the 5-yr Treasury auction was a little stronger than average. The bid-to-cover was 2.51 and foreign buyers purchased 56% of the total. The Dow rose 5 points. Tomorrow, Preliminary GDP and Jobless Claims will be released at 8:30 et. In addition, there was a 7-yr Treasury auction at 1:00...
08/27/2009
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The Fed's Lacker suggested that the Fed may not need to purchase the entire $1.25 trillion of MBS, the maximum authorized, if the economy improves before the end of the year. There was little reaction in MBS markets, however, as Lacker's views are often contrary to those of the other Fed official...
08/27/2009
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MBS prices are down -6/32 (FNMA 30-yr 4.5 at 100.12), below the initial price level at -5/32. A high of -2/32 was reached and a few investors issued favorable reprices. Today's economic data came in close to expectations and had little impact. Demand for the 7-yr Treasury auction was stronger th...
08/27/2009
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MBS prices are down 1/32 (FNMA 30-yr 4.5 at 100.31), just below the initial price level of +1/32. Despite today's economic news, it was a quiet session. Durable Orders came in a little stronger than expected. July New Home Sales rose 10% from June to an annual rate of 433K units, above the consen...
08/26/2009
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Tuesday, FHFA and Case-Shiller both released their figures for national second quarter home prices. The FHFA data includes only homes purchased with Fannie Mae- and Freddie Mac- acquired mortgages. FHFA reported a decline of -0.7% for the second quarter and a drop of -6% from one year earlier. Ca...
08/26/2009
