Market Snapshot September 10, 2018
Good Monday Morning and wishing you a Happy New Year if you are celebrating it,
Bonds are flat today after the shellacking they took on Friday. Despite new/additional tariffs and currency concerns, last Friday’s data, and the expectation for two more Fed rate hikes this year (Sept and December) are what’s in focus. The positive spin is that 1) bonds (both treasuries and mortgage backed securities) are flat on the day so we can hope that the bleeding is over for now and 2) most indicators are confirming bonds are oversold, so some buyers should step in which would help rates… the questions is always, when? The 10-yr Is at 2.94%. Just something to keep an eye on as a 10-yr above 3% is not very friendly for mortgage rates. There is a good amount of data this week, with a bit tomorrow and the real meat later in the week. PPI on Wednesday and CPI on Thursday and the Retail sales. Certainly enough news to confirm the upward trend or help us get back below 2.90% and into the lower trading channel. Bonds are bearish right now so I would, and am, playing defense. Lock and float down if rates improve.
Make today great!