Market Snapshot October 10, 2019
Good afternoon on this fantastic Thursday,
Short and sweet commentary from Dan Rawitch… As feared bonds have fallen. Again there is no fundamental reason for the drop and in fact, the fundamentals argue for better rates. CPI came in nice and cool, well below expectations but the Dow is up again over optimism that a trade deal is eminent. How is this possible when their lead negotiator has been stripped of his title and has no decision making ability? The overnight market was down 300 points at one time last night over a story the China changed plans and was staying just one day. Later in the night the story overshadowed with a more optimistic view of the visit and the market.
The 10-yr has popped to 1.67% in very quick fashion. Mortgage bonds are off 30bps. Mortgage pricing flat to early Oct. and maintaining mid-range within 20 bps of lows in early-Sept and highs in mid-Sept. We will shake this off and bonds will improve.
Make today great!