Mortgage bond prices opened higher Tuesday morning

Mortgage bond prices opened higher Tuesday morning adding to the gains seen Monday afternoon.

In news released at the open, personal income rose 0.5% and outlays were unchanged. Expectations were for income to rise 0.4% and outlays to rise 0.1%. The inflation component of the report, core PCE, rose 0.2% as expected.

Traders are now waiting for stocks to begin trade at 9:30 am ET and for the release of consumer confidence data set for 10:00 am ET.

The Federal Reserve convenes a two-day meeting today and will announce any changes to monetary policy tomorrow. Thursday the ECB meets and Friday brings the monthly jobs report. Traders’ expectations for action from the central banks are high, especially for the ECB. While the Fed has the option of waiting until September, when the governing body publishes new economic projections, Mr. Draghi from the ECB does not have that luxury. With rising unemployment and falling GDP, the ECB must do something to sooth the markets. Europe desperately needs to buy some time.

Mortgage bond prices opened slightly higher Monday

Mortgage bond prices opened slightly higher Monday morning erasing some of the losses seen Friday afternoon. Rates are finding mild support in thin trade from weak stock futures.

With no economic news set for release today traders are waiting for stocks to begin trade to help gauge interest rate direction. The equity markets open at 9:30 am ET.

This week is packed with important events that will move prices of both bonds and stocks. Central Banks in the US, England and Europe all meet this week. Markets continue to price in additional easing as the global economic outlook darkens. Prepare yourself and your borrowers for what could be a wild ride.

The market is Worse by 3/8 since Thursday 's ratesheet

Mortgage bond prices remained weaker this morning pushing rates higher as stocks surged higher yesterday on hopes of Fed intervention. Stock futures are up again this morning after the DOW closed up 212 points yesterday.

Advance Q2 GDP up 1.5% as expected, consumer sentiment data later this morning. The initial reaction to the data has been poor for bonds causing rates to rise.

Oil prices rose this morning on hopes of additional action from both the European Central Bank and the Fed.

Weekly jobless claims came in @353k, expected @380k

Mortgage bond prices remain slightly weaker this morning pushing rates higher.

The headline figures of the economic releases this morning were not rate friendly, but some of the underlying components resulted in mixed reports.

Weekly jobless claims came in @353k, expected @380k. This was not rate friendly. Durable Goods Orders up 1.6%, expected up 0.4%. This also pressured rates. However, the ex-transportation component of the durable goods release showed a 1.1% decrease which was considerably weaker than the expected unchanged reading.

News out of the euro zone indicated the European Central Bank would boost efforts to shore the instability. Full details This reduces the flight to quality buying of U.S. debt instruments in the short term. However, the euro zone troubles are far from over. Spain and Greece remain in dire shape. Full details

Expect additional volatility!

Mortgage bond prices opened weaker this morning on news out of the euro zone

ECB member stated that the euro rescue fund should be granted a banking license. This sent some initial shockwaves through the financial markets.

There was no data first thing this morning. We have new home sales data @ 10am et and a 5Y auction this afternoon.

News Data out of the euro zone showed continued weakness. A German manufacturing report showed weak sentiment along with lower capacity use.

While there are no certainties, the euro zone crisis is far from over and we are likely to see additional market swings. Stay alert.

How long can they weather the storm?

Mortgage bond prices opened slightly weaker as we see things back up from the recent runup in prices.

There was no data this morning. We have a 2Y note auction this afternoon.

News out of the euro zone was mixed this morning. Moody's downgraded Germany's credit rating outlook and Chancellor Merkel was quick to counter those reports with her own statements which indicated, “Germany will, through solid economic and financial policy, defend its ‘safe haven’ status and continue to responsibly maintain its anchor role in the euro zone." The trouble isn't that Germany's economy is solid compared to the rest of the euro zone, rather, Germany is being slowly but surely bound to the risk from all the other insolvent countries(Spain, Italy, Greece, etc....)

Mortgage bond prices opened higher this morning pushing rates lower.

There is no economic data today. However this week brings 2/5/7-year auctions and Q2 GDP.

Europe continues to slide toward the financial abyss. News out of Spain over the weekend indicated various regional governments are seeking financial assistance. Spain's 10 year borrowing costs surged higher to near the 7.5% mark. These regional governments must refinance billions in debt and are struggling to find a solution.

Spain isn't the only concern as the Greek prime minister indicated the country was in a "Great Depression."

The flight to quality buying of U.S. debt instruments continues. In the short term this is great for U.S. mortgage interest rates. However, the future remains uncertain. Escalating oil prices could ignite inflation fears which would create a dire situation for economies across the globe.

Mortgaeg Bond Prices Open Higher

Mortgage bond prices opened higher Friday morning adding to the small gains seen Thursday afternoon. Rates are finding support from weak stocks in Europe and Asia.

There is no economic data set for release today, therefore traders will watch stocks to help gauge interest rate direction. The equity markets open at 9:30 am ET.

Trade in Europe was quiet overnight. The region continues to slide toward a financial abyss. Rising interest rates and unemployment continue to pressure member states. Unless decisive policy action is taken soon the damage will only get worse.

Mortgage bond prices near unchanged

Mortgage bond prices near unchanged Thursday morning holding mortgage rates steady from pricing Wednesday.

In news released at the open, weekly jobless claims printed at 386K and continuing claims, a summation of all receiving benefits, at 3,314K. Expectations were for weekly claims to increase 15K to 365K and continuing claims to fall 4K to 3,300K.

Traders are now waiting for stocks to begin trade at 9:30 am ET and for the release of existing home sales, LEI and the Philly Fed survey set for 10:00 am ET.

Things are heating up in Europe once again. Spain, the euro zones most precarious country, raised almost $4B in 2/5/7-year notes however it paid handsomely to do so. Buyers shunned the offering driving yields higher. Spain in once again at threshold of having to pay 7% in the secondary market to raise money, a rate that is considered unsustainable.

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Mortgage bond prices opened higher Wednesday

Mortgage bond prices opened higher Wednesday morning erasing the small losses seen Tuesday afternoon.

In news released at the open, housing starts printed at 760K. Expectations were for starts to increase 35K to 743K. That data was stronger than expected.

Traders are waiting for stocks to begin trade at 9:30 am ET. Federal Reserve Chairman Ben Bernanke will be in front of the House today delivering a carbon copy of the talk he gave the Senate yesterday.

This afternoon the Fed Beige book data will be released. The report details economic activity in the US. Traders will scour the report hoping to find the silver bullet that is QE3. That data will be released at 2:00 pm ET.

Mortgage bond prices opened higher Monday morning adding to the gains

Mortgage bond prices opened higher Monday morning adding to the gains seen Friday afternoon. Bonds are finding support from weak economic news released at the open.

In news released at the open, retail sales fell 0.5% in June. Excluding car purchases, retail sales fell 0.4%. That data was sharply weaker than expected. Analysts had estimated sales would rise 0.2% and ex-auto sales would be unchanged.

Traders are waiting for stocks to begin trade at 9:30 am ET.

This week is packed with important events and data, which will cause prices to swing. Tomorrow brings consumer price index (CPI), production and utilization data. Wednesday brings housing starts and the Fed Beige Book and Thursday we will see jobless claims, LEI and the Philly Fed survey. In addition 1/3 of the stocks in the Dow will release earnings reports.

The main event of the week is expected to be Federal Reserve Chairman Ben Bernanke's congressional testimony on the economic outlook on Tuesday and Wednesday. Investors will scour his remarks for any hints the Fed is leaning toward providing additional monetary stimulus.

The Euro Zone continues to struggle. In a turnaround from previous policy, the European Central Bank (ECB) advocated imposing losses on senior bondholders of debt issued by Spanish banks. This marks a contrast to the position the bank took when bailing out Irish banks in 2010 and is furthers evidence the situation in Europe is fluid.

PPI up 0.1%, expected down 0.5%, Core up 0.2% as expected

Mortgage bond prices opened weaker this morning following the higher than expected inflation data. This erased the small gains from yesterday afternoon.

The producer price index rose 0.1%, higher than the expected 0.5% decrease. The core, which excludes volatile food and energy prices, rose 0.2% as expected.

We still have consumer sentiment data @ 10am et.

Stock futures are slightly higher.

News out of the euro zone is generally tame this morning. Italian officials are railing against another Moody's downgrade of Italy's credit rating. Concerns continue to grow in Spain regarding reports that Spanish banks are having difficulty staying capitalized. Turmoil abroad is generally good for U.S. debt instruments which are viewed as a safe-haven amid all global uncertainty.

Rates are due for a bounce

Mortgage bond prices opened slightly positive this morning helping erase most of the losses from yesterday afternoon. Unfortunately we still remain a few ticks worse since pricing yesterday morning.

We initially looked to open considerably positive following overnight developments in the euro zone. Unfortunately the data came in against us which pared some of the gains. Weekly jobless claims @ 350k, expected @ 372k, not rate friendly.

The ECB released a report indicating the possibility of additional downside risks.

We have a 30Y auction this afternoon.

Mortgage Rates Continue to Drop

Mortgage bond prices opened near unchanged this morning holding the gains from yesterday afternoon.

This morning represents a forward drop for MBS traders. The front month for delivery has rolled to August. This is a technical aspect of the bond market and has no real impact on daily rates. Secondary managers have been pricing into the August coupon for some time. What is most noticeable is the drop in bond prices as forward months fall approximately 8/32s to 10/32s.

Rates continue to find support from weakness abroad but Germany had an auction with a low yield overnight. Overall the news out of the euro zone is tame so far this morning.

We have a 10Y auction this afternoon along with the Fed minutes. Stock futures are slightly positive.

Mortgage Bond Prices At all Time Lows

Mortgage bond prices remained near unchanged this morning holding the gains from yesterday. Rates continue to find support from weakness abroad.

There was no data this morning. Stock futures are slightly higher this morning after the DOW closed down 36 points yesterday.

News out of Europe this morning inidcated finance ministers eased up on austerity demands to help Spain. News out of China continued to show economic slowdown.

We have a 3Y auction this afternoon.

Mortgage bond prices

Mortgage bond prices opened positive this morning helping mortgage interest rates improve.

There was no data this morning. Stock futures are slightly weaker pointing to a lower open for equities later this morning.

News out of Europe this morning shows continued trouble. Spain's borrowing costs continue to increase which has euro zone leaders scrambling. In the short term this is good for U.S. debt instruments as flight to safety resumes.

Only Rose 80k

Mortgage bond prices opened higher Friday morning adding to the gains seen Thursday afternoon.

In news released this morning, non-farm payrolls rose 80K and the unemployment rate stood at 8.2%. Analysts’ expectations were for the US economy to add 100K new jobs and the unemployment rate to stand at 8.2%. That data was weaker than expected and bond friendly.

Traders are now waiting for stocks to begin trade at 9:30 am ET.

Things were quiet in Europe overnight. Governments in the region continue to move forward with a more pro-growth stance than in the past. The strict austerity demanded of the PIGS has only caused their respective economies to spiral downward. Unemployment in Greece and Spain is north of 20%, near 50% for the younger workers. High unemployment can be devastating from a fiscal and social perspective. Everyone loses when an unemployed person has his or her house taken by a bank.

Stronger than expected...

Mortgage bond prices opened lower Thursday morning following stronger than expected economic data.

In news released this morning, the ADP payroll report showed the US economy added 176K private sector jobs last month. Analysts were expecting the ADP report to show 105K jobs. That data was much higher than expected.

Weekly jobless claims printed at 374K and continuing claims, a summation of all receiving benefits, at 3,306K. Expectations were for weekly claims to fall 1K to 385K and continuing claims to 13K to 3,283K.

The data released this morning was better than expected and not bond friendly.

Traders are now waiting for stocks to begin trade at 9:30 am ET. Currently Dow futures indicate a flat open.

Tomorrow brings the monthly jobs report for the Bureau of Labor Statistics (BLS). Trading volumes are thin with many senior traders still on vacation. Let your floating borrowers know tomorrow brings the single most important economic event of the month.

Central banks around the globe cut lending rates and used other tools to spur economic growth. The People’s Bank of China lowered interest rates for the second time in a month. The European Central Bank cut lending rates by .25% to a historic low of .75%. In England, the Bank of England left rates unchanged however they increased its bond-buying program (QE) by 50B pounds. Looks like QE3 is in the wings.