Market Snapshot October 11, 2017

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Good Morning on this Wednesday.


I was fortunate to be at the inaugural home game for the Las Vegas Golden Knights last night. Great game which the Golden Knights won 5-2 (and are currently 3,0,0 leading the  Division). Equal to the win was the tribute the team and fans made to the first responders from last week’s tragic shooting. It was a very emotional outpouring of support while our community starts to heal. #VegasStrong


Today is bond rollover day… So what does that mean to me? Really nothing other than if you are watching charts, the bonds would have opened down 16 bps without impacting pricing. It’s just a reset button to start the next trading cycle. From there, bonds are pretty flat on the day. The 10-yr  is doing a bit better and is at 2.34%. Not too hot and not too cold.  Later today we will see the release of the Fed minutes and, depending on the language used in those minutes, it could have an impact on the market. Tomorrow and Friday, the news gets bigger with PPI, CPI and Retail sales on tap.


I found it interesting to read (as it mimics our internal metrics) that ATTOM Data Solutions, reported nearly one-fourth of all purchase loans originated in the second quarter involved co-borrowers, which is up by nearly 3 percent from a year ago. Is it that homebuyers are increasingly relying on co-borrowers to help with home purchases, particularly in high-priced markets where sizable down payments are necessary to compete, or is it people are waiting longer to be married and are buying with a significant other instead of that person being a spouse. Certainly a combination of both, however prices are driving this dynamic…


Bonds still look poised to improve but that does not always mean they will. Indicators showing bonds are oversold so it may be worth floating this a.m. just to see how the day plays out.


Make today great!