MArket Update 10/14/2015
MBS are up +5/32 (FNMA 30-yr 3.5 at 104.14), around 7/32 higher than yesterday at this time.
MBS prices jumped this morning after another major economic report came in well below expectations. September Retail Sales rose 0.1% from August, below the consensus for an increase of 0.2%. Excluding autos, Retail Sales fell 0.3%, below the consensus for a decrease of just 0.1%. In addition, the August results were revised downward. The Dow is up 10 points. The Fed’s Beige Book will be released at 2:00 et.
September PPI fell 0.5% from August, below the consensus for a decline of just 0.2%, and it was 1.1% lower than a year ago. Core PPI, which excludes food and energy, decreased 0.3%, below the consensus for an increase of 0.1%. Core PPI was 0.8% higher than a year ago.