Good Friday morning, from your Hometown Lender,

No data to speak of today other than the Consumer Sentiment number. It was dismal. The bullet points are:

• The University of Michigan’s consumer sentiment index fell nearly 10 points in May to 67.4, its lowest reading since November and the steepest fall in the survey in nearly three years.
• Economists were expecting a more modest drop in the survey results.
• Inflation continues to worry the public, with consumers again raising their expectations for future price increases.

It should have helped bonds but did not.

It’s just not that important of a report to traders but to me, it speaks volumes. After touching the lowest part of the current trading channel yesterday and not breaking through, it is not surprising that we now head back the other way. This and some (expected) hawkish comments from a few Fed members are putting a little pressure on bonds and clawing back most of what we gained yesterday. Today is also bond rollover day so if you are looking at mortgage bond prices, they are off about 30 basis points total but 10bps is the rollover, but that has no impact on pricing. Next week becomes much more interesting with CPI and PPI. We will see what those reports show and if the Fedspeak changes at all.

Stay safe, happy Mother’s Day and, make today great!!!