Market Wrap:monthly coupon rollover

MARKET WRAP: Mortgage Bonds had their monthly coupon rollover after the close of trading today. The effect of this rollover was minus 34bp points for the 4% coupon. Therefore, while the Bond quote for today shows minus 59bp closing at 97.66, the minus 34bp rollover adjustment must be accounted for. This means that pricing actually closed down 25bp on the day. A report out from think-tank group Medley Group Advisors, fueled concerns that the Fed may start withdrawing monetary stimulus earlier than expected and pushed Treasury prices lower and spilled over into Mortgage Backed Securities. Stock markets moved higher today as money shifted from the Bond markets and as oil moved a bit lower, Boeing received a $10B from 2 airlines in China, B of A hinted of a possible dividend hike and allies of Gadaffi said were looking at exit plans for the leader. The Dow rose 124.35 to 12,214.38, the Nasdaq jumped 20.14 to 2,765.77 while the S&P 500 Index rose 11.69 to 1,321.82. Oil settled at $105.02/barrel down 42 cents after key oil producers considered increasing output. There are no major economic reports due for release tomorrow. The Treasury will sell $21B 10-yr notes.

Maine Mortgage Market Wrap

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.

Maine Mortgage Market Update 02.15.2011

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.

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.