Maine Mortgage Market Wrap

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.

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.