Delivered to over
70,000+ industry professionals
each day, the Daily Newsletter is the
definitive recap of the day's most
relevant mortgage and real estate news and data. View the latest Newsletter below.
View our most recent newsletter below, or use the date selector to view past newsletters.
Earnings Season in Full Swing as Bonds Hold Range
Have you heard the one about Ferrari moving the bond market? Well, now you have. In an apparent mystery move before the start of the domestic session, stocks and bond yields dropped in unison. It wasn't the biggest move ever, but it was abrupt enough to suggest discrete motivation. The only suspect at the scene of the crime? Ferrari earnings! What's the takeaway? Simply put: earnings season is in full swing. Stock/bond correlation has increased, and could continue to be a factor for small-scale volatility in a week where the dominant focus remains on Friday's jobs report.
Econ Data / Events
Fed MBS Buying 10am, 1130am, 1pm
Market Movement Recap
08:12 AM Overnight session began weaker (and quiet, with much of Asia out on holidays this week). EU yields were modestly higher. Treasuries followed, but rallied back at 7:45am as stocks tanked, apparently on Ferrari earnings. 10yr yields unchanged at 1.603. MBS nearly unchanged at 103-24 (103.75).
10:04 AM More stock/bond correlation at the 9:30am NYSE open. 10yr yields now down 3.5bps on the day to 1.564. UMBS 2.5 and 2.0s both up more than an eighth.
11:20 AM Quick but relatively small pop higher in yields after Yellen comments (more here). Supportive bounce already kicking in. MBS back to unchanged levels. 10yr yields still slightly lower on the day, but 2 bps off the previous lows.
03:04 PM Super sideways all afternoon after the Yellen-inspired correction traveled another 2bp higher in 10yr yields (now unchanged on the day). UMBS 2.5 coupons didn't lose much more ground and are also unchanged.
|
MBS Commentary
|
|
|
Earnings Season in Full Swing as Bonds Hold Range
Have you heard the one about Ferrari moving the bond market? Well, now you have. In an apparent mystery move before the start of the domestic sess... (read more) |
|
|
Rob Chrisman
|
|
|
Most other countries construct homes out of concrete, stone, steel, or brick, but here in the good ol’ USA we use wood. A renewable resource, right? I mention this because lumber prices, which the government doesn’t control (yet) have ris... (read more) |
|
|
Housing News
|
|
|
Black Knight's "first look" at March loan performance data explored the somewhat traditional dip in delinquencies each March due to calendar events like the arrival of tax refunds and the decline of winter utility bills. That was amplified this past ... (read more) |
|
|
Housing News
|
|
|
Both Fannie Mae and Freddie Mac reported improved income during the first quarter of 2021. Fannie Mae said its net income increased from $4.57 billion in the fourth quarter of 2020 to $4.99 while Freddie Mac reported a net of $2.77 billion and compre... (read more) |
|
|
Housing News
|
|
|
Freddie Mac reported this week that its total mortgage portfolio increased at an annualized rate of 27.2 percent in March compared to a 17.7 percent gain in February. The portfolio balance at the end of the period was $2.927 trillion compared to $2.8... (read more) |
|
|
Mortgage Rate Watch
|
|
|
Mortgage rates were mixed today, depending on the lender. Virtually every lender began the day with slightly higher rates, but most offered mid-day improvements in response to market conditions. As always, worth remembering that when we talk about "r... (read more) |
|
|
|
|
