Just when you thought it was safe to look away from the economic calendar...the schedule for the coming week is swimming with potentially market moving events and releases. Manufacturing, producer and consumer inflation, new home construction, the insightful "Minutes" from the last Fed Meeting - this week has a little something for everyone, and the result may be more volatility lurking ahead for Bonds and home loan rates.
Remember that when Bond prices move higher, home loan rates get lower and vice versa, so we want to see Bond prices move higher for home loan rates to improve. And lately, they've been held back from making any moves higher by a "ceiling" overhead - the 25-day Moving Average, simply meaning the average closing price of Bonds for the previous 25 days.
Bonds react more strongly to these technical floors and ceilings when the news calendar is light, so with a heavy news week in store, the tone of the headlines will likely determine if Bonds can muster up enough muscle to crack through the overhead ceiling and help home loan rates improve or if they'll be pummeled lower, causing home loan rates to rise. Check out the economic calendar below for all the action...and stay tuned for next week's issue with all the details.
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