I love 4pm on Wall Street...

Every time the closing bell rings, MG drops what he is doing and sprints across the room toward the kitchen. He actually took out a trash can and two chairs just now. All for his snack pack....and no I dont mean Rebecca Jarvis. 

But yeh, the closing bell just rang and open outcry stock markets are now closed. I am focusing on stocks because they were dictating the direction of interest rates after the FOMC statement was released. To illustrate the negative correlation between the two, I decided to compare S&P futures prices to 10yr TSY note futures prices. As stocks rebounded following the Fed statement, rates prices moved lower. That is the stock lever at work....

Switching over to cash market yields, 10s have settled at the 3.65% pivot point (MG likes 3.64, I like 3.65). The 3.375% coupon bearing 10yr TSY note is -0-07 at 97-24 yielding 3.65 on the dot.

Everyone was selling after the FOMC release: dealers, money managers, hedge funds, banks, black boxes. Check out how large the sell orders were in the futures market. Wooooowhhheeeeee...that is selling in SIZE.

Mortgages are heading into the close near their worst price levels of the day. The FN 4.0 is -0-08 at 97-21 yielding 4.224%  and the FN 4.5 is -0-06 at 100-24 yielding 4.428%. The secondary market current coupon is 4.397%.

We've seen a handful of lenders recall rate sheets,  but nothing widespread. Tonight's State of the Union address will determine rates direction overnight into tomorrow morning.

I find it fitting my pandora just played THIS SONG