Market Update 5/14/2015
MBS are up +8/32 (FNMA 30-yr 3.0 at 100.16), around 7/32 lower than yesterday at this time. Unfavorable repricing took place yesterday. Early investors may have priced at lower levels.
It has been another volatile morning. Weaker than expected PPI inflation data may have contributed to the gains for MBS. April PPI fell 0.4% from March, below the consensus for an increase of 0.2%, and it was 1.3% lower than a year ago. Core PPI, which excludes food and energy, decreased 0.2%, below the consensus for an increase of 0.1%. Core PPI was 0.8% higher than a year ago. Weekly Jobless Claims came in at 264K, below the consensus of 275K. The Dow is up 100 points. No more economic data will be released today. The results from the 30-yr Treasury auction will come out around 1:00 et.