Maine Mortgage Market Wrap 02.08.2011

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.

Maine Mortgage Market Wrap 02.07.2011

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.

Maine Mortgage Market Wrap 02.04.2011

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!

Maine Mortgage Market Wrap 02.03.2011

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.

Mortgage Bonds Rally late in the day

Impressive comeback with the close above the 25-Day Moving Average. MARKET WRAP: Mortgage Bonds opened sharply lower this morning as investors moved into more riskier asset classes but as the trading day unfolded they were able to push higher but still closed in negative territory. The 4% coupon ended at 99.50 down 12bp but a far cry from the day’s low of 99.0. Today’s ISM Index turned out to be the highest in 7 months at 57.0 and nearly inline with expectations. Stocks finished well into positive territory but did close off the best levels of the session. Investors feel that improved economic data is leading to higher growth for the U.S. economy, which led to today’s rally and was supported by the ISM data. The finished at its best level since August 28, 2008 at 11,670.75 up 93.24. The S&P 500 finished at 1,271.87 up 14.23 while the Nasdaq rose 38.65 to 2,691.52. Oil ended at $91.55/barrel up 25 cents. Tomorrow there is no economic data but the Fed will release its minutes from the December 14 FOMC meeting.