Mortgage bond prices opened considerably lower pushing rates higher following the data this morning. The lower coupons are taking it harder than others currently.
Weekly jobless claims came in at 439k, expected at 440k, not bond friendly.
We have Leading economic indicators and Philadelphia Fed data later this morning.
Mortgage bond prices opened lower Wednesday morning adding to the losses seen Tuesday afternoon.
In news released this morning, weekly jobless claims stood at 435K and continuing claims, a summation of all receiving benefits stood at 4,301K. Economists’ expectations were for a read of 450K and 4,350 respectively. That data was stronger than expected and not bond friendly.
In other news, the trade balance stood at –44B. Traders were expecting a deficit of 44.8B. That data was near expectations.
Market participants are now waiting for stocks to begin trade at 9:30 am ET and for the outcome of the Treasury auction of $16B in 30-bonds at 1:15 pm ET.
LOOKING AHEAD
| Economic Indicator |
Release Date & Time |
Consensus Estimate |
Analysis |
| 3-year Treasury Note Auction | Monday, Nov. 8, 1:15 pm, et |
None | Important. $32 billion of notes will be auctioned. Strong demand may lead to lower mortgage rates. |
| 10-year Treasury Note Auction | Tuesday, Nov. 9, 1:15 pm, et |
None | Important. $24 billion of notes will be auctioned. Strong demand may lead to lower mortgage rates. |
| Weekly jobless claims | Wednesday, Nov. 10, 8:30 am, et |
460k | Important. An indication of unemployment. Higher figure may lead to lower mortgage rates. |
| Trade Data | Wednesday, Nov. 10, 8:30 am, et |
$46b deficit | Important. Affects the value of the dollar. A falling deficit may strengthen the dollar and lead to lower rates. |
| 30-year Treasury Bond Auction | Wednesday, Nov. 10, 1:15 pm, et |
None | Important. $16 billion of bonds will be auctioned. Strong demand may lead to lower mortgage rates. |
| U of Michigan Consumer Sentiment | Friday, Nov. 12, 8:30 am, et |
67 | Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates. |
Mortgage bond prices remain stronger this morning erasing the losses from yesterday afternoon following the data this morning.
Preliminary Q3 productivity rose 1.9%, higher than the expected 1% increase.
Weekly jobless claims came in at 457k, higher than the expected 443k.
We still have the employment report looming tomorrow. There is more potential for wild market swings so be cautious.
Mortgage bond prices remain higher Thursday morning erasing the losses seen Wednesday afternoon and more.
In news released this morning weekly jobless claims stood at 434K and continuing claims stood at 4,356K. Analysts were expecting claims at 458K and 4,450K respectively. That data was better than expected and not bond friendly.
Traders will spend the day watching stocks as they wait for the results of Treasury auction of $29B in 7-year notes. Auction results are expected by 1:15 pm ET.
Third quarter GDP data will be released tomorrow morning.
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