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Market Snapshot 6.6.22- Bonds Under Pressure

Good Monday AM,

Bonds are under pressure this morning. There is no scheduled news today, so the move appears technical. When we crossed the 2.94% level on the ten-year bond, it was clear that 3% needed to be tested once again. Mortgage bonds did not hold, and it is once again below the 25-day moving average. This is a very light news week with not much happening until Friday when we get CPI and consumer confidence. Meanwhile, the market must find a new range, and given the selling pressure in Mortgage bonds today, it appears that the range is going to move lower in price.

Consumer sentiment is one of my favorite indicators.

First, it is one of the only forward looking indicators we can point to and second (and most importantly), the consumer is almost never wrong and out performs all of the pundits and think tank folks continuously. With that, Americans are deeply pessimistic about the U.S. economy and view the nation as sharply divided over its most important values, according to a new Wall Street Journal-NORC Poll. The findings are from a Journal survey conducted with NORC at the University of Chicago, a nonpartisan research organization that measures social attitudes. The survey found Americans in a sour mood and registering some of the highest levels of economic dissatisfaction in years. The pessimism extended beyond the current economy to include doubts about the nation’s political system, its role as a global leader and its ability to help most people achieve the American dream. Some 83% of respondents described the state of the economy as poor or not so good. More than one-third, or 35%, said they aren’t satisfied at all with their financial situation. That was the highest level of dissatisfaction since NORC began asking the question every few years starting in 1972, Janet Adamy reports.

There is one bright spot that home listings are creeping up. The below graph is a bright spot to focus on. That can only translate into more sales and higher velocity.

However, most of the data is bond friendly (which doesn’t bode well for economic growth). Buckle up buttercup…

Please remain safe and healthy, make today great.