February 2011
We mostly focus on rate and bond markets, but it’s worth noting the opposite side of the trade today. Rates rose about .2% today because manufacturing inflation spooked bond markets, but the inflation is from a good trend of growth (this table shows growth trend). Stocks liked the news, with the Dow ending at 12,040,
In light of today’s higher business inflation report, here’s a useful inflation reference tool from WSJ that I saw on ZeroHedge. But it should be noted that this is for consumer inflation, and business inflation is really the worry spot for bond and rate markets.
In light of today’s higher business inflation report, here’s a useful inflation reference tool from WSJ that I saw on ZeroHedge. But it should be noted that this is for consumer inflation, and business inflation is really the worry spot for bond and rate markets.
If this morning’s mortgage bond selloff holds (MBS currently down 47 basis points), rates will rise about .2% today. The Egypt revolution was helping rates in the past couple trading days despite better GDP Friday (+3.2% for 4Q2010) and higher inflation in Chicago-area manufacturing yesterday, but the best manufacturing report since 2004 today put bond
If this morning’s mortgage bond selloff holds (MBS currently down 47 basis points), rates will rise about .2% today. The Egypt revolution was helping rates in the past couple trading days despite better GDP Friday (+3.2% for 4Q2010) and higher inflation in Chicago-area manufacturing yesterday, but the best manufacturing report since 2004 today put bond
A survey of more than 100 lenders by Freddie Mac showed that adjustable rate mortgages (ARMs) are attracting applicants again, and that their market share may go from 3% in 2009 to almost 10% in 2011. Gone, for the most part, are two-year adjustables, option ARM’s, “pick-a-pay” ARMs, etc., and they’ve been replaced with the
Click picture to learn about and stay up to speed on the revolution in Egypt.
On Friday, a revolution and resulting chaos in Egypt caused U.S. rates (on 30yr fixed loans up to $417k) to drop .125% but Monday rates rose that amount, back to 4.875%, as mortgage bond traders re-focused on U.S. business inflation. The Chicago Purchasing Managers Index is one of many monthly manufacturing surveys done across the