Consumer Confidence declined to a 7-month low in September, led by weak job outlooks and income growth prospects.
Recap from Reuters...
10:00 28Sep10 RTRS-US SEPT CONSUMER CONFIDENCE INDEX 48.5 VS AUG REVISED 53.2 (PREVIOUS 53.5) - CONFERENCE BOARD
10:00 28Sep10 RTRS-US CONSUMER CONFIDENCE INDEX MEDIAN FORECAST FROM REUTERS FOR SEPTEMBER WAS 52.5
10:00 28Sep10 RTRS-US CONSUMER PRESENT SITUATION INDEX 23.1 IN SEPT VS AUG 24.9
10:00 28Sep10 RTRS-US CONSUMER EXPECTATIONS INDEX 65.4 IN SEPT VS AUG REVISED 72.0 (PREVIOUS 72.5) - CONFERENCE BOARD
10:00 28Sep10 RTRS-US JOBS HARD-TO-GET INDEX 46.1 IN SEPT VS AUG REVISED 45.5 (PREVIOUS 45.7)--CONFERENCE BOARD
10:00 28Sep10 RTRS-US 1-YEAR CONSUMER INFLATION RATE EXPECTATIONS 4.9 PCT IN SEPT VS AUG REV 5.0 PCT (PREVIOUS 4.9)
10:00 28Sep10 RTRS-CONFERENCE BOARD SEPT INDEXES FOR CONSUMER CONFIDENCE, PRESENT SITUATION, EXPECTATIONS ALL LOWEST SINCE FEBRUARY
10:00 28Sep10 RTRS-TABLE-US consumer confidence 48.5 in Sept -Conf Board
Stock futures fell 10 handles as the data flashed, from 1140 to 1130. S&Ps are currently -8.50 at 1129.25. Volume spiked into that down trade.
The yield curve is getting crushed in a bullish manner (read "crushed" as flattened). The 2s/10s curve is another 3bps flatter at 204bps wide. Benchmark 10s have broken 2.50% resistance. 10s are now trading +15/32 at 101-09 yielding 2.478%(-5.4bps).
Rate sheet influential MBS are pacing their benchmark guidance givers from a distance. The November delivery FNCL 4.0 is currently +0-05 at 102-26. I have the production MBS coupon marked at 3.585%. Yield spreads are wider vs, TSYs and swaps (also wider).
re: Mortgage Rates
Loan pricing was 10.2 bps better on average yesterday but rate sheet influential MBS prices were up about 0.375bps. Most lenders didn't reprice for the better yesterday afternoon, this means you are owed bps from yesterday plus the price appreciations we are seeing today.
Plain and Simple: rebate should be significantly better today. Loan pricing competition is picking up!