Maine Mortgage Market Wrap 02.22.2011

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.

Maine Mortgage Market Wrap 02.14.2011

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.

Maine Mortgage Market Update 02.11.2011

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.

Maine Mortgage Market Wrap 02.09.2011

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.

 

Huge jump in Treasury bond yields lures buyers back to the battered market

Yesterday the 4% coupon fell 100bp with the absence of buyers, but the opposite happened today as buyers came out in droves and pushed the coupon up 119bp to 98.94! Bargain hunting and a strong performance by the 7-yr note auction were the catalysts behind the move. Stocks had another dull session with low volumes in the absence of any economic news. The Dow rose 9.84 to 11,585.38, the S&P 500 gained a mere 1.27 to 1,259.78 while the Nasdaq finished at 2,666.93 up 4.05. Crude oil fell 37 cents to $91.12/barrel. Tomorrow’s economic data includes Initial Claims, Pending Home Sales and Chicago PMI.