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Listen Live
Saturday’s: 9AM 1590 AM/97.9 FM KVTA
Sunday’s: 7AM K-EARTH 101 FM
MBS OVERVIEW
Our benchmark FNMA MBS 6.00 July Coupon is currently up +19 BPS.
Markit Down: The June Markit Flash PMIs showed Manufacturing at 46.3 vs. est. of 48.5 and Services PMI at 54.1.0 vs. est. of 54.0
Not a lot of data this week other than housing news. The week headlined by Jerome Powell’s Congressional testimony. The range for the 10 year note this week, 3.69% to 3.80%. The economic damage this week was in Europe that stoked the chatter today on recession concerns. Powell wants higher rates; markets remain cautious that the economy may weaken allowing the Fed to continue to step back. For all the Fed speak the rate markets still trade in a narrow range, not discounting a rate increase yet.
Next week, the calendar as much to digest. Treasury will auction 2s, 5s, and 7s Tuesday, Wednesday and Thursday respectively. Tuesday May durable goods orders, Case/Shiller home price index for April, June consumer confidence index, May new home sales. Wednesday weekly MBA mortgage apps. May advance US trade deficit. Thursday weekly jobless claims, final Q1 GDP, May pending home sales. Friday May personal income and spending, May PCE inflation, U. of Michigan final June consumer sentiment index.
Is this the beginning of a selling binge in equity markets that some have been anticipating, the indexes had a very tough week?
This week: The 10 year note yield this week -3 bps; FNMA 6.0 30 year coupon -17 bp, 5.5 30 year coupon -17 bps. The DJIA -572, NASDAQ -203, S&P -62. Gold this week declined $41.00, crude oil declined $2.51. The dollar continued its increase, the dollar index increased 0.32 a strong move. Bitcoin jumped, up 4,806 to 30,817 on settlement of a lawsuit against Coinbase.
