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.
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.
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.
MARKET WRAP: Mortgage Bonds had their monthly coupon rollover after the close of trading today. The effect of this rollover was minus 31bp points for the 4% coupon ending down 81bp on the day. The fall today was due to continued inflation pressures and economic optimism and as money continues to move into the Stock markets. The Dow jumped 71.52 to end at 12,233.15 for its 7th straight gain and its longest winning streak in nearly 7 months. The S&P 500 Index rose 5.52 to 1,324.57 while the Nasdaq rose 13.06 to 2,797.05. Oil settled at $87.80/barrel down 64 cents. There are no economic reports tomorrow. The Treasury will sell $24B 10-yr notes tomorrow.
MARKET WRAP: Mortgage Bonds fell today for a 6th straight session pressured lower by rising Stock markets. Stocks were fueled by M&A deals and by economic optimism. Continued inflation fears and Treasury supply issues were the catalysts in the move lower by Bonds. The 4% coupon finished the session at 97.53 down 16bp but did manage to rally from the morning lows. and this could lead to a switch to the 4.5% coupon in the near future. The Dow rose 69.40 to 12,161.55 for its 6th straight daily gain, its longest winning streak in 3 months. The S&p 500 Index gained 8.18 to 1,319.05 while the Nasdaq jumped 14.69 to 2,783.99. Oil settled at $87.48/barrel down $1.53. There were no economic reports today and none on Tuesday. Tomorrow the Treasury will sell $32B in 3-yr t notes tomorrow with the results to be released at 1:00pm ET.
MARKET WRAP: Mortgage Bonds fell for the 5th straight this week on positive economic reports, supply issues next week, inflation fears and a fall in the unemployment rate. The 4% coupon close to 200bp this week finishing at 99.62 down 47bp. Stocks managed to put up gains this week with the Dow rising 2.3% to 12092.15, the S&P 500 up 2.7% to 1,310.87 while the Nasdaq rose 3.1% to end the week at 2,769.30. Oil finished at $89.03/barrel falling 0.4% for the week. Next week’s economic calendar is extremely light with just weekly claims on Thursday and Consumer Sentiment on Friday. The Treasury will sell $72B in 3 and 10 year notes along with 30 year Bonds next week. Have a great weekend!
MARKET WRAP: Mortgage Bonds fell for a 4th straight session on a better than expected reading from the ISM Services, lower Initial Claims, Treasury supply next week and the biggest fear of all, inflation, which has been fueled by rising oil and food prices. The 4% coupon fell 34bp to end the session at 98.09. Stock markets ended on the positive side after trading most of the session near unchanged. But the gains were muted by the looming jobs report that is due to be released tomorrow as traders didn’t look to add any new positions ahead of the release.