Market Snapshot October 13, 2020
Good Tuesday PM,
Treasuries are strong and Mortgage bonds are up as well. The data out today neutral/as expected with CPI in at 1.7%. Stocks are in the red today but off less than 1% which is of no concern. For the last few weeks. Treasury prices have fallen which has pushed rates up. They have come back a bit today with the 10-yr at .73. Mortgage bonds now sit on the 100-day moving average and if we do not hold there, we will run down another .25. Keep in mind, when we lose support, it is hard to know where the bottom is and traders often need to see multiple tests of the bottom, before they trust it, and run the prices back up. The elevator always feels faster going down than up.
Since we are in the throes of the election, I found the info and graphs below to be fairly interesting. I don’t know that they will really mean anything come November 3rd but it will stir some conversation.
Please remain safe and healthy, make today great!