Market Update 12/3/2015
LOCK IN NOW BEFORE RATES GO UP. Fed NEWS yesterday was positive towards a Dec rate hike and the ECB is also effecting rates Domestically:
MBS are down -8/32 (FNMA 30-yr 3.5 at 103.13), around 10/32 lower than yesterday at this time. Early investors may have priced at higher levels.
This morning, the European Central Bank (ECB) announced additional stimulus measures, but the package was smaller than expected. The ECB cut rates and will extend its bond purchase program until at least March 2017 (from its original end date of September 2016), but the quantity of monthly purchases will remain at $60 billion euros. Investors were looking for a large expansion of this figure. The smaller than expected package means less added demand for bonds, and bond yields around the world moved higher on the news. The Dow is down 40 points. ISM Services and Factory Orders will be released at 10:00 et. Fed Chair Yellen will be testifying before Congress at 10:00 et as well.