CHM Blog

The week began with rates unchanged from Friday. The economic calendar doesn’t have much until Thursday and Friday when December CPI and PPI will be released. Treasury auctioning 3s, 10s and 30s Tuesday, Wednesday, and Thursday respectively. This afternoon November consumer credit at 3 pm ET, our ongoing concern in the data is the use of credit cards (revolving credit). Increasing use of credit is a key to what consumers can be expected to do as the clock ticks; it doesn’t get many headlines although it should but isn’t going unnoticed.

The DJIA under pressure early this morning driven mostly on the decline in Boeing stock after grounding of 737-9 Max planes. The blowout of a door on Alaska Air grounded planes by United and Alaska Air, in the absence of any other major news dominated stories this morning; no one was injured.

Secretary of State Blinken meeting with United Arab Emirates President Sheikh Mohamed bin Zayed Al Nahyan and will later meet Saudi Crown Prince Mohammed bin Salman trying to get some consensus on how the Gaza Strip will be governed once the war ends.

At 9:30 am the DJIA opened -144, NASDAQ +65, S&P +9. 10 year note at 9:30 am 4.04% unchanged; FNMA 6.0 30 year coupon +5 bps from Friday’s close.

Today began quietly but by 10 am the 10 yield was declining and MBS prices +35 bps and +30 bps from 9:30 am. Any news from the mid-east isn’t likely have any noticeable impact.

PRICES @ 10:00 AM

10 year note: 4.01% -3 bp

5 year note: 3.97% -5 bp

2 year note: 4.36% -4 bp

30 year bond: 4.18% -2 bp

30 year FNMA 6.0: @9:30 101.19 +5 bp

30 year FNMA 6.5: @9:30 102.24 +5 bp

30 year GNMA 5.5: @9:30 100.33 -3 bp

Dollar/Yuan: $7.1579 +$0.0280

Dollar/Yen: 144.18 -0.45 yen

Dollar/Euro: $1.0961 +$0.0022

Dollar Index: 102.34 -0.08

Gold: $2,029.40 -$20.40

Bitcoin: 45,007 +715

Crude Oil: $70.28 -$3.53

DJIA: 37,318 -148

NASDAQ: 14,672 +148

S&P 500: 4714 +17

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.

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