ARCHIVED BLOG POSTS
2009
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The Fed uses two different indices to measure inflation. The first, the Consumer Price Index (CPI) is a fixed group of commodities that is issued as a general index and a core index. The core index is without the volatile elements of food and energy. The Fed's preferred inflation index, howeve...
11/12/2009
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What a wild ride! Mortgage backed securities (MBS) closed up 28 basis points today closing at a lofty 101.50 having crossedd through one level of resistance and stopping squarely on another. At one point during the day, after the auction results were released, MBS bonds were down 38 basis point...
11/12/2009
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The Federal Reserve is the bank for banker's and the steward of inflation and employment. Its goal is to stabilize the monetary system. There are three major benchmarks with which the FED monitors how the economy is doing. The first is the Gross Domestic Product (GDP) which is the sum of all t...
11/11/2009
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Mortgage backed securities (MBS) markets were closed today in observance of Veteran's Day. The stock market was open, however. The Dow Jones closed up 44 and the S & P 500, an unmanaged index of stocks, closed up for the eighth consecutive day. Members of the FED spoke yesterday about the impo...
11/11/2009
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Mortgage Backed Securities (MBS) closed up 3 basis points closing at 101.12 above all moving averages and below an historical technical resistance levels. Today's Treasury auction of $25 Billion ten year notes went fairly well but bonds sold off from their highs of the day. The Dow Jones closed...
11/10/2009
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Each bond is traded in coupons designated by a different month. At the end of that month that coupon essentially expires and the ensuing months coupon be come the currently traded commodity. When the coupon ends there is a pricing adjustment to get to the next month's pricing. This rollover co...
11/09/2009
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Mortgage backed securities (MBS) closed down 19 basis points today at 101.09. They were up 19 basis pointes at the end of the day but were then adjusted downward by 38 basis points due to the bond coupon rollover. They remained above all the charted moving averages and below historical technica...
11/09/2009
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President Obama signed the new tax credit bill yesterday. Here are the details: First Time buyers are eligible for an $8,000. tax credit if purchasing jointly ($4,000. for married filing separately) for purchases after November 30, 2009 and contracted for by April 30, 2010 and closed by July 1, ...
11/07/2009
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Mortgage backed securities closed up 22 basis points today at 101.28 just below a new resistance level at 101.34. As I suggested in yesterday's blog, there were 190,000 job losses in October which was more than the 175,000 expected and the unemployment rate was up to 10.2%. This sparked a wild ...
11/06/2009
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Investors are speculating that tomorrow's jobs report will be better than the current estimate of 175,000 jobs lost. Should the number be closer to 200,000 jobs, however, the unemployment rate would likely surge over 10%. The effect of that eventuality could cause a much anticipated correction ...
11/05/2009
