Dec 11th 2015 Market Update
MBS are up +8/32 (FNMA 30-yr 3.5 at 103.12), around 3/32 higher than yesterday at this time. Unfavorable repricing took place yesterday. Early investors may have priced at lower levels.
A decline in stocks has lifted MBS this morning. The Dow is down 250 points. Consumer Sentiment will be released at 10:00 et.
November Retail Sales rose 0.2% from October, below the consensus for an increase of 0.3%. Excluding the volatile auto component, Retail Sales rose 0.4%, above the consensus for an increase of 0.3%. November PPI rose 0.3% from October, above the consensus for a decrease of 0.1%, and it was 1.1% lower than one year ago. Core PPI, which excludes food and energy, increased 0.3%, above the consensus for an increase of 0.1%. Core PPI was 0.5% higher than one year ago.