Mortgage bond prices are higher this morning helped recover some of the losses from yesterday.
Bonds pare recent losses after PPI data. PPI up 0.4%, expected up 0.8%, core down 0.6%, expected up 0.1%. This data was very bond friendly and a great start to the trading day following the recent nastiness we have seen.
We have industrial production and capacity use data @ 9:15 expected up 0.3%, Capacity use @ 74.8%, expected @ 74.9%
Rates are volatile and that is not going to go away anytime soon. These are not normal times, governments around the world are providing stimulus making valuation of assets almost impossible. In the US, the Fed is buying debt, in Europe there are four countries that could default. China’s economy is strong creating massive pressure on commodity prices which could spark inflation. The Feds move to buy debt pressures the dollar lower and since commodities are priced in US dollars there is additional upward pressure on commodity prices. You get the idea, this is complicated.