Last Updated: 11/19/2007
Monday's bond market has opened in positive territory following another weak morning in stocks. The Dow is currently down 167 points while the Nasdaq has lost 35 points. The bond market is currently up 10/32, which will likely improve this morning's mortgage rates by approximately .125 of a discount point.
There is no relevant economic news scheduled for release today. The rest of this holiday-shortened week brings us the release of three factual economic releases. However, none of them are likely to affect mortgage rates much. The bond market is expected to close early Wednesday and Friday and be closed the entire day Thursday in observance of the Thanksgiving Day holiday. In addition, I expect to see light trading in the financial markets most of the time that the markets are open.
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Marina Vialtsina
Showing posts with label Dow. Show all posts
Showing posts with label Dow. Show all posts
Monday, November 19, 2007
Tuesday, October 2, 2007
MMG Update - Tuesday, October 2, 2007 10:36am ET
Current Trend Direction: Sideways
Risks favor: Floating
Current Price of FNMA 6.0% Bond: $100.16, -6bp
Yesterday, Mortgage Bonds bounced off of support at the 200-day Moving Average and while prices did finish the day higher, the advance was stopped at the 25-day MA resistance level. This morning, Mortgage Bonds are trading slightly lower and are now directly between these moving averages.
Stocks are trying to find some direction today after the Dow closed at an all-time high yesterday and above the 14,000 level. Should Stocks continue to move higher, it may be at the expense of Bonds, but it is not likely Bond prices will fall below the 200-day Moving Average in advance of Friday's important Jobs Report.
Housing news - the Pending Home Sales Index for August reported a -6.5% drop in sales, which was lower than expectations of a -2.0% drop in sales, but not nearly as bad as July’s dismal showing of a -10.7%. The Pending Home Sales Index is reported by the National Association of Realtors as a leading indicator of existing home sales. Mortgage Bonds ticked slightly higher on the weak news.
Dallas Federal Reserve President Richard “Loose Lips” Fisher is scheduled to speak in Dallas , Texas at 1:35pm ET. A Q&A session is expected to follow the speech so bond traders will be listening closely as Mr. Fisher has been known to rifle off remarks that could impact the market.
Mortgage Bonds continue to trade above the 200-day Moving Average and we will continue to float as long as prices remain above this floor.
Current Trend Direction: Sideways
Risks favor: Floating
Current Price of FNMA 6.0% Bond: $100.16, -6bp
Yesterday, Mortgage Bonds bounced off of support at the 200-day Moving Average and while prices did finish the day higher, the advance was stopped at the 25-day MA resistance level. This morning, Mortgage Bonds are trading slightly lower and are now directly between these moving averages.
Stocks are trying to find some direction today after the Dow closed at an all-time high yesterday and above the 14,000 level. Should Stocks continue to move higher, it may be at the expense of Bonds, but it is not likely Bond prices will fall below the 200-day Moving Average in advance of Friday's important Jobs Report.
Housing news - the Pending Home Sales Index for August reported a -6.5% drop in sales, which was lower than expectations of a -2.0% drop in sales, but not nearly as bad as July’s dismal showing of a -10.7%. The Pending Home Sales Index is reported by the National Association of Realtors as a leading indicator of existing home sales. Mortgage Bonds ticked slightly higher on the weak news.
Dallas Federal Reserve President Richard “Loose Lips” Fisher is scheduled to speak in Dallas , Texas at 1:35pm ET. A Q&A session is expected to follow the speech so bond traders will be listening closely as Mr. Fisher has been known to rifle off remarks that could impact the market.
Mortgage Bonds continue to trade above the 200-day Moving Average and we will continue to float as long as prices remain above this floor.
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