Market Snapshot April 16, 2019

condo1

Good Tuesday A.M.,

 

The news today was bond friendly for the most part, with industrial production and capacity utilization both missing expectations. The NAMB housing number came in as expected, however equities in Europe and Asia are doing well and traders are clearly thinking about taking on more risk. I don’t get it, but they have a lot of money and the returns in equities are always greater than the returns in bonds. The 10-yr is at 2.59% and clearly the message is for the moment, rates are increasing. Mortgage bonds are down 12bps and have another 7 or so or running room before they should find a floor.

 

There are some other key economic reports this week; retail sales on Thursday and housing starts on Friday.

 

Play defense for the time being. Lock and float down.

 

Make today great!