ARCHIVED BLOG POSTS
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
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MBS prices are down -2/32 (FNMA 30-yr 4.5 at 100.41), below the initial price level at +2/32. It was a very volatile session and all sorts of repricing took place. Two days of major inflation and economic growth data, along with news from the Fed, created a lot of disagreement today among investo...
09/16/2009
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Fed Chief Bernanke indicated that the recession is "very likely over" in a speech today, but he also pointed out that the recovery may be very gradual. The Dow is up 50 points to a new high for the year at 9683. Tomorrow, CPI (Consumer Price Index) and Industrial Production will be released. Man...
09/15/2009
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MBS prices are down -1/32 (FNMA 30-yr 4.5 at 100.47), above the initial price level at -6/32. MBS prices dropped early after the release of today's strong economic data and then held in a range. Retail Sales rose at the fastest monthly pace since January 2006, and PPI (the Producer Price Index) i...
09/15/2009
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MBS prices are down -9/32 (FNMA 30-yr 4.5 at 100.50), below the initial price level at -5/32, and well below the high for the day at -1/32. No economic data came out today. President Obama stated his support for financial regulatory reform. The Dow is up 20 points. Tomorrow, PPI, Retail Sales, an...
09/14/2009
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The most significant economic data this week will be the monthly inflation reports. The Producer Price Index (PPI) focuses on the increase in prices of "intermediate" goods used by companies to produce finished products and will come out on Tuesday. The Consumer Price Index (CPI), the most closel...
09/14/2009
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The Beige Book reported that economic activity is stabilizing or rising in 11 of the Fed's 12 regions. The Fed's Evans suggested that it's too early for the Fed to tighten credit The value of the US dollar dropped to its lowest level of the year The Fed purchased $19 billion in agency MBS during ...
09/11/2009
In a light week for economic data, the Treasury auctions had the greatest influence on mortgage markets. Strong auction results, particularly for the 30-yr Treasuries, helped mortgage rates move lower during the week. In recent months, mortgage rates have been heavily influenced by concerns abou...
09/11/2009
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MBS prices are up +1/32 (FNMA 30-yr 4.5 at 100.78), below the initial price level at +4/32. MBS prices reached a high of +9/32 before falling off to nearly flat on the day. Consumer Sentiment rose to 70.2, above the consensus forecast of 67.5. The Dow is down 25 points. For the week, MBS prices ...
09/11/2009
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The Fed purchased $18.8 billion in agency MBS during the weekly period ending September 9, from $25.7 billion the prior week. Freddie Mac reported that average mortgage rates fell in the week through September 10, with 30-yrs hitting 5.07%, from 5.08% the prior week. The Dow was up 80 points tod...
09/10/2009
