Today did not bring about the rapid fire sell off that could have occurred from very strong jobs report numbers yesterday and todays PPI report.
However they did bring a slight correction to the high levels in the bonds from last week and now have us looking at support levels appx 50bps lower than last week.
Currently the FNMA 3.0 coupon is sitting at 103.625 showing support at 103.50 and resistance at 104.
What does this mean?
Simple - the rates have pricing affected by appx .375 - .5 higher to achieve the exact same deal you could have gotten last week but in the grand scheme it really is insignificant as the rate you can access is likely the same to "at worst" .125% higher to offset the cost.
With rates at 50yr lows NOW is the time to buy a new home or refi and save money on the one you already have!
Here is todays market data...
The UST 10-Year yield is at 1.530% this morning after closing at 1.470% yesterday. The Final Demand Producer Price Index for June was released this morning, reflecting an increase of 0.50%. The price index for Final Demand Services rose 0.40%, and the price index for Final Demand Goods advanced 0.80%. Initial jobless claims came in flat this morning, reporting that the amount of Americans who applied for unemployment benefits last week remained at 254k, further proof that the US labor market continues to remain strong despite a slower pace of hiring in 2016.