MARKET WRAP: Not much action in the Mortgage Bond markets today as events in North Africa and the Mid East somewhat subsided. Inflation remained tame as evidenced by the Core PCE report but a strong Chicago PMI weighed on prices throughout the session. Our benchmark 4% coupon rose 3bp to 98.56 and traded in a 22bp range today. Stock markets were able to rally today after last week’s sell-off on the ease of news from Libya and on the The 50-day moving average continues to be a strong layer of resistance for Mortgage Bonds. MARKET WRAP: Not much action in the Mortgage Bond markets today as events in North Africa and the Mid East somewhat subsided. Inflation remained tame as evidenced by the Core PCE report but a strong Chicago PMI weighed on prices throughout the session. Our benchmark 4% coupon rose 3bp to 98.56 and traded in a 22bp range today. Stock markets were able to rally today after last week’s sell-off on the ease of news from Libya and on the Chicago PMI Index. The Dow rose 95.89 to 12,226.34, the S&P 500 Index was up 7.34 to 1,327.22 while the Nasdaq saw a moderate gain of 1.22 to 2,782.27. February was the 3rd straight month of gains for the major indices. Oil prices fell 91 cents to $96.97/barrel but were up 5% for the month. Tomorrow the ISM Manufacturing Index will be released.. The Dow rose 95.89 to 12,226.34, the S&P 500 Index was up 7.34 to 1,327.22 while the Nasdaq saw a moderate gain of 1.22 to 2,782.27. February was the 3rd straight month of gains for the major indices. Oil prices fell 91 cents to $96.97/barrel but were up 5% for the month. Tomorrow the ISM Manufacturing Index will be released.
MARKET WRAP:Today was fueled by geopolitical news and the Bond was halted by resistance at the 50-Day Moving Average. Oil prices were on a roller coaster ride today trading as high as $103.41 and as low as $95.62 on the geopolitical news out of North Africa. The news went from the extreme that Gaddafi was about to employ chemical weapons to rumors that the dictator had been shot dead. The rumors were unfounded as oil closed near the bottom end of today’s range at $97.28/barrel down 82 cents. The Bond markets were able to push higher on the unrest in Libya as the 4% coupon rose 22bp to 98.28. Stocks spent most of the day well underwater on the Libyan news despite lower Initial Jobless Claims and a jump in Durable Orders but were able to pare those losses. The Dow fell 37.28 to 12,068.50, the S&P 500 Index lost 1.30 to 1,306.10 while the Nasdaq gained 14.91 to 2,737.90. Tomorrow’s economic data includes GDP – 2nd estimate and Michigan Sentiment.
MARKET WRAP: Tensions in the Mideast led investors to the safe haven of the Bond markets today and sent shockwaves through the Stock markets. Libyan dictator Gadhafi tried to cling to power today after a 42 year reign as he tried to push the Airforce to fire on their own people. The 4% coupon surged 53bp to end the session at 98.09, near the highs of the session. Stock markets plunged on the news with the Dow falling 178.46 to 12,212.79, the S&P 500 fell 27.57 to 1,315.44 while the Nasdaq lost 77.73 to end at 2,756.42. Oil prices soared on the Mideast unrest as the problems could disrupt oil flow – Lt. Sweet Crude rose $7.37 to $93.57/barrel for March, which is expiring today. The April contract rose $5.71 to $95.42/barrel, which will be in focus starting tomorrow. Existing Home Sales will be released tomorrow. The Treasury will sell $35B 5-year Notes on Wednesday.
In 2010 housing prices and transaction volume stabilized in the real estate markets of Portland ME. The median sales price clocked in at 209K…exactly where it was in 2009. A total of 610 Portland Maine condos and homes sold compared with 586 in 2009. Currently the markets are a bit slower than normal which is not necessarily surprising for this time of year, but winter weather has further stymied activity! However, the general vibe in the housing market is upbeat and as Portland continues to grow and receive a ton of positive nationwide press I suspect we shall see a very strong and healthy market going forward.
MARKET WRAP: Mortgage Bonds traded higher for the 3rd straight session on Stock weakness and after softer than expected economic data. Retail Sales were a bit lower than expected, which also helped to boost Bond prices. The 4% coupon rose 25bp to end the session at 97.38. Stocks ended lower today as the recent rally seems to be losing some steam. The Dow dropped 41.55 to 12,226.64, the S&P 500 Index slipped 4.30 to 1,328.01 while the Nasdaq lost 12.83 to 2,804.35. Oil settled at $84.32 down 42 cents and represented an 11th week low. Tomorrow’s economic data includes the Producer Price Index along with Housing Starts/Building Permits.
MARKET WRAP: The Bond markets rallied for a 2nd straight day as investors looked for bargain prices after the recent steep sell-off. Stock markets traded near unchanged levels throughout the session, which gave some support to Bonds. There were no economic reports released today. The 4% coupon rose 12bp to end the session at 97.12 and closed above resistance at 96.78. As mentioned, Stocks had an uneventful day. The Dow lost 5.07 to 12,268.19, the S&P 500 Index was up 3.17 to 1,332.32 while the Nasdaq gained 7.74 to 2,817.18. Lt. Sweet Crude lost 77 cents to $84.81/barrel. Tomorrow’s economic data includes Retail Sales and NY State Empire Manufacturing data.
MARKET WRAP: Mortgage Bonds were finally able to put together a meaningful rally today after several failed attempts the past few days as investors went bargain hunting. The 4% coupon rose 53bp to end the session at 97.00 finishing near the highs of the session despite a rise in the Stock markets. The Dow rose 43.97 to 12,273.26, the S&P 500 gained 7.28 to 1,329.15 while the Nasdaq 2,809.44 up 18.99 on the Mubarek resignation. Oil ended at $85.88/barrel down $1.15 to its lowest level in 10 weeks on the Egyptian news resting concerns of a threat to oil.
MARKET WRAP: The Bond markets hopped on the roller coaster today as volatility continues to dominate trading. Mortgage Bonds opened higher this morning after 7 straight days of losses, then fell, but were able to surge after the strong results from today’s 10-yr note auction. The 4% coupon rose 34bp to end the session at 96.78 and just below the daily high. Stocks spent most of the session near unchanged levels as investors took some profits after their recent run higher but the Dow did manage to squeak out a gain for its 8th straight winning session. The Dow rose 6.74 to 12,239.89, the Nasdaq fell 7.98 to 2,789.07 while the closely watched S&P 500 Index lost 3.69 to 1,320.88. Oil settled near unchanged at $86.71/barrel up 23 cents. The Treasury will sell $16B in 30-yr Bonds tomorrow while weekly initial claims will be reported at 8:30am ET.
MARKET WRAP: Mortgage Bonds had their monthly coupon rollover after the close of trading today. The effect of this rollover was minus 31bp points for the 4% coupon ending down 81bp on the day. The fall today was due to continued inflation pressures and economic optimism and as money continues to move into the Stock markets. The Dow jumped 71.52 to end at 12,233.15 for its 7th straight gain and its longest winning streak in nearly 7 months. The S&P 500 Index rose 5.52 to 1,324.57 while the Nasdaq rose 13.06 to 2,797.05. Oil settled at $87.80/barrel down 64 cents. There are no economic reports tomorrow. The Treasury will sell $24B 10-yr notes tomorrow.
MARKET WRAP: Mortgage Bonds fell today for a 6th straight session pressured lower by rising Stock markets. Stocks were fueled by M&A deals and by economic optimism. Continued inflation fears and Treasury supply issues were the catalysts in the move lower by Bonds. The 4% coupon finished the session at 97.53 down 16bp but did manage to rally from the morning lows. and this could lead to a switch to the 4.5% coupon in the near future. The Dow rose 69.40 to 12,161.55 for its 6th straight daily gain, its longest winning streak in 3 months. The S&p 500 Index gained 8.18 to 1,319.05 while the Nasdaq jumped 14.69 to 2,783.99. Oil settled at $87.48/barrel down $1.53. There were no economic reports today and none on Tuesday. Tomorrow the Treasury will sell $32B in 3-yr t notes tomorrow with the results to be released at 1:00pm ET.