Mon, Jan 30 2023, 4:40 PM
Skittish Over Data and Central Bankers
With no relevant market movers on the US calendar today, it was notab...
Mon, Jan 30 2023, 10:38 AM
Unlike last week, the present example offers multiple scheduled economic reports that have consistent track records of causing market movement. Key e...
Fri, Jan 27 2023, 4:57 PM
5 for 5 on Uneventful Trading Days; Next Week Should be Different
Heading into this week, if we had to guess...
Fri, Jan 27 2023, 4:43 PM
There are those who always try to portray the glass as being half full when it comes to the housing market. Then there are those who love a full glass...
Fri, Jan 27 2023, 12:06 PM
The two reports most capable of surprising the market this week were Thursday's GDP and Friday's PCE. While it's always good to maintain some respect...
Thu, Jan 26 2023, 4:28 PM
No Major Reaction to Data Means More Focus on Next Week
Thursday morning's economic data provided one of onl...
Thu, Jan 26 2023, 3:33 PM
Scheduled economic reports are one of the first places the market looks to get a read on interest rate momentum. Of all the days this week, Thursday ...
Thu, Jan 26 2023, 10:53 AM
Thursday's opening commentary could very well end up being the closing commentary. We came into the day entertaining the possibility that economic da...
Wed, Jan 25 2023, 4:26 PM
Mortgage rates are primarily determined by the bond market, and it's been an uneventful week for bonds! That means we haven't seen much of a change i...
Wed, Jan 25 2023, 3:55 PM
Uneventful Week Continues
Next time bond traders have a hard time getting to sleep, they could just read a r...
Wed, Jan 25 2023, 11:52 AM
If you'd like to skip right to the end, the week is shaping up to be every bit as inconsequential as anticipated with bonds holding in a fairly narrow...
Tue, Jan 24 2023, 4:31 PM
Mortgage rates began the day at higher levels than yesterday for the average lender, but the movement was fairly small. Most lenders were still able ...
Tue, Jan 24 2023, 3:53 PM
Small Scale Volatility Against Bigger-Picture Holding Pattern
Bonds took several opportunities to react to e...
Tue, Jan 24 2023, 11:03 AM
After having a case of the Mondays yesterday (unclear motivations and range-bound weakness amid low volume and light liquidity) bonds are back in the ...
Mon, Jan 23 2023, 4:15 PM
After hitting the lowest levels in 4 months at times over the past week, rates have drifted up a bit. There hasn't been much rhyme or reason behind t...
Mon, Jan 23 2023, 4:07 PM
Bonds Have a Case of The Mondays
Unlike the past 3 Mondays, which have seen fairly healthy participation and...
Mon, Jan 23 2023, 11:34 AM
Reduced to the most simplistic of considerations, bond market price movement is all about supply and demand. The same is true of just about anything ...
Fri, Jan 20 2023, 5:03 PM
Bonds Retreat a Bit. No Compelling Reasons or Implications
Bonds rallied to the best levels in months ear...
Fri, Jan 20 2023, 1:01 PM
Since coming off the highest rates in more than a decade in November, bonds ran into resistance just before the end of the year. That resistance coin...
Thu, Jan 19 2023, 4:04 PM
If you cross paths with the average mortgage rate article (or tweet/post/etc) today, chances are you'll see some mention of "rates moving lower." Tha...
Thu, Jan 19 2023, 3:51 PM
Here's What's Up With These Big Swings in MBS Prices
Thursday ended up being a boring, uneventful trading da...
Thu, Jan 19 2023, 11:41 AM
So much illiquidity this week... But what does that really mean? Let's break it down...
There are buyers and sellers in the MBS market submitting "...
Wed, Jan 18 2023, 4:28 PM
Mortgage rates moved down at a fairly quick pace today following a slew of rate-friendly headlines. Technically, the headlines were good for the bond...
Wed, Jan 18 2023, 4:20 PM
Big Rally Challenges Range Floor. What Next?
Bonds started strong in the overnight session thanks to an unch...
Wed, Jan 18 2023, 11:55 AM
There was a fair amount of anticipation over the most recent policy announcement from the Bank of Japan (BOJ) which came out early in the overnight se...
Tue, Jan 17 2023, 3:59 PM
Limited Market Motivations as Traders Wait to Fill in Blanks
There was a palpable absence of relevant source...
Tue, Jan 17 2023, 3:39 PM
The holiday-shortened week sees mortgage rates starting out slightly higher when compared to the end of last week. Versus any other day in the past 4...
Tue, Jan 17 2023, 12:15 PM
By the middle of December, bond yields made a convincing move down from decades-long highs and settled in a sideways range on CPI/Fed week. We re-ent...
Fri, Jan 13 2023, 4:50 PM
Mortgage rates officially hit their lowest levels in 4 months after this week's inflation data. Despite the recent progress, Fed officials continue to...
Fri, Jan 13 2023, 3:30 PM
Incidental Weakness Today, But Let's Focus on The Bigger Picture
Bonds tried to stage a mid-day rally, but e...
Fri, Jan 13 2023, 12:26 PM
Recently, the bond market's job description seems to be almost entirely focused on reacting to CPI and then waiting for the next one. Perhaps we can ...
Thu, Jan 12 2023, 4:46 PM
Today brought the scheduled monthly release of the Consumer Price Index (CPI). Of all the monthly economic reports, this one has had the biggest impa...
Thu, Jan 12 2023, 4:15 PM
Bonds Finally Decide They Liked Today's Inflation Numbers
You won't see too many days with a 10+ bp rally in...
Thu, Jan 12 2023, 10:30 AM
CPI came out very much in line with forecasts. We'd discussed the possibility of threading the needle in terms of financial markets not moving much i...
Wed, Jan 11 2023, 3:31 PM
Mortgage rates are based primarily on the prices and yields of bonds. Bonds take cues from several places, but always from inflation and the economy-...
Wed, Jan 11 2023, 3:19 PM
Consolidation Takes Friendly Turn Ahead of CPI
Our focus this week has been on the notion of consolidation a...
Wed, Jan 11 2023, 10:46 AM
The Consumer Price Index (CPI) spent nearly a decade being ignored as a market mover due to an absence of any interesting momentum in inflation. That...
Tue, Jan 10 2023, 4:12 PM
MBS Outperform as Treasuries Get Hit by Issuance
By 4pm, 5.0 MBS are only down a hair over an eighth of a po...
Tue, Jan 10 2023, 3:51 PM
After coming close to the lowest levels in 4 months yesterday, mortgage rates bounced slightly higher today. There's never any way to know exactly wh...
Tue, Jan 10 2023, 12:04 PM
"Circling the wagons" isn't a particularly specific term in the realm of financial market commentary. It's just a simple way to say that bonds had be...
Mon, Jan 9 2023, 3:43 PM
Last Friday was a great day for mortgage rates with two important economic reports helping the bond market make serious gains (read more). Mortgage le...
Mon, Jan 9 2023, 3:32 PM
Decent Day Helps Legitimize Friday's Gains
Any time we see a strong move on NFP Friday with a hint of "snowb...
Mon, Jan 9 2023, 11:32 AM
Last week brought a series of economic reports that took the bond market in both directions. Thursday's data pushed yields somewhat higher, but Frida...
Fri, Jan 6 2023, 4:50 PM
The Federal Reserve (aka "The Fed") has a parrot problem, and it's on a crash course with economic reality... maybe. The Fed sets policies that impac...
Fri, Jan 6 2023, 4:49 PM
ISM and NFP Team Up To Send Rates Sharply Lower
Bonds got off to a strong start today when the wage componen...
Fri, Jan 6 2023, 9:50 AM
Here's a puzzler--at least at first glance. This morning's much-anticipated jobs report came out stronger than expected with nonfarm payrolls at 223k...
Thu, Jan 5 2023, 3:32 PM
The most basic way to think about interest rate movement is to assume that a strong economy pushes rates higher and vice versa. There are many other ...
Thu, Jan 5 2023, 3:24 PM
Bonds Push Back Against Stronger Employment Data, But Tomorrow is a Different Fight
Bonds got off to a weake...
Thu, Jan 5 2023, 11:32 AM
The past two days of moderate gains have been "nice," but they were just a prologue to the more relevant opening days of 2023. For the last 2.5 weeks...
Wed, Jan 4 2023, 4:11 PM
There are Fed Announcements, which involve rate hikes/cuts, press conferences, and updated rate forecasts after a 2 day meeting among Fed members. An...
