CHM Blog

The day began quietly with little news ahead of inflation data tomorrow. Once again, yesterday the tone was set in overnight trading, the 10 year note yesterday morning at 3.99% but through the day the yield increased to close at 4.03% -6 bps. MBS prices lagged, improving just 4 bps. The news yesterday was Moody’s rating agency dropping ratings on 10 small and regional banks and put 11 more on watch. Last week Fitch downgraded US Treasuries from AAA to AA+. The news weighed on the financial sector while banks in Europe were also pressured after it was reported that Italy is planning a one-time 40% tax on windfall profits of banks. This morning the Bank of England commented that UK inflation is likely to stay high through 2026.

There isn’t any data today, the only thing of substance is the 10 year note auction at 1 pm. The demand closely watched.

At 9:30 am the DJIA opened -21, NASDAQ +2, S&P unchanged. 10 year note yield 4.01% -2 bps. FNMA 6.0 30 year coupon at 9:30 am -5 bps and -14 bps from 9:30 am yesterday.

Tomorrow July CPI expected month/month +0.2% unchanged from June, year/year +3.3% from 3.0% in June; the core month/month +0.2% unchanged from June, year/year +4.8% also unchanged from June. Weekly jobless claims expected at 229K from 227K the prior week.

PRICES @ 10:00 AM

10 year note: 4.02% -1 bp

5 year note: 4.12% +1 bp

2 year note: 4.77% +1 bp

30 year bond: 4.19% -2 bp

30 year FNMA 6.0: @9:30 am 100.39 -5 bp (-13 bp from 9:30 am yesterday)

30 year FNMA 5.5: @9:30 am 99.05 +11 bp (-2 bp from 9:30 am yesterday)

30 year GNMA 5.5: @9:30 am 98.98 -5 bp (-11 bp from 9:30 am yesterday)

Dollar/Yuan: $7.2070 -$0.0100

Dollar/Yen: 143.31 -0.07 yen

Dollar/Euro: $1.0980 +$0.0022

Dollar Index: 102.40 -0.13

Gold: $1958.30 -$1.60

Bitcoin: 29,932 -58

Crude Oil: $83.73 +$0.81

DJIA: 35,315 +1

NASDAQ: 13,825 -59

S&P 500: 4494 -5

Richard Sardella has been actively managing and providing services in the mortgage industry for over 30 years. Richard serves on the board of directors as President of Colorado Home Mortgages Inc.

All information furnished has been forwarded to you and is provided by thetbwsgroup only for informational purposes. Forecasting shall be considered as events which may be expected but not guaranteed. Neither the forwarding party and/or company nor thetbwsgroup assume any responsibility to any person who relies on information or forecasting contained in this report and disclaims all liability in respect to decisions or actions, or lack thereof based on any or all of the contents of this report.

MLO of record MLO.100007700 / NMLS#233568 / CHM NMLS#127716.