Derek McClintock's Blog

Week Ahead The most significant economic data next week will be the monthly inflation reports. The Producer Price Index (PPI) focuses on the increase in prices of "intermediate" goods used by companies to produce finished products and will come out on Tuesday. The Consumer Price Index (CPI), the ...

Treasury yields increased yesterday. MBS prices lower. This morning in early activity the 10 yr note was unchanged as were all MBS prices until about 9:30; US stock indexes at 9:00 generally unchanged, in Europe a mixed picture, France lower but Germany and England a little better. No major news ...

Treasuries and mortgages opened lower (price) this morning; yesterday the 10 yr note fell back to its 1st resistance at 1.85%, early today back to 1.89% while MBS prices early down 15 bp at 9:00. Late yesterday 30 yr FNMAs saw some late buying about 4:45 pushed the price up 8 bp frm where we mark...

Once again this morning markets started unchanged from the day before. There is simply not much to trade on with Congress out and no economic data this week (weekly jobless claims tomorrow). Scanning the news wires this morning didn’t reveal anything of consequence that might motivate traders or ...

Another quiet session so far this morning. There is no news to move markets with Congress out this week; the battles over the debt ceiling, entitlements and revenue increases have yet to get under way. Interest rate markets are slightly better in early trade; the 10 yr note rose to 1.97% last wee...

The bond and mortgage markets started a little better this morning; both markets technically overdone, bonds oversold, stocks overbought. That said, neither trend shows any evidence of reversing, just some retracements. There are no economic releases today, and not much for the week. Treasury wil...

Mortgage Rates Move Higher The year began on a rough note for mortgage rates. A one-two combination of a fiscal cliff deal and unfavorable news from the Fed caused mortgage rates to end the week sharply higher. The economic data released this week generally came in close to expectations. Wednesda...

Normally after 4:00 pm each day markets do not move much into the5:00 close; yesterday additional selling after 4:00 pushed prices downanother 16 bp frm levels we recorded on the 4:30 report. On the day yesterday30 yr FNMA prices plunged 69 bp, GNMAs -72 bp, both 13 bp lower than at 4:00.This mor...

MBS are down -17/32 (FNMA 30-yr 3.0 at 104.04), around 18/32 below morninglevels, and at the lows for the day. Unfavorable repricing took place. The FOMC Minutes from the December 12 Fed meeting surprised investors and sentMBS sharply lower this afternoon. Quite simply, there was far less support...

Very early this morning the bond and mortgage markets wereslightly better after selling of treasuries yesterday and the huge rally in thestock indexes on relief Congress got around to keeping taxes from increasing(although SS taxes will increase by 2.0% after two years of lower taxes). Itdidn’t l...