Market Update 6/15/2016
MBS are up +1/32 (FNMA 30-yr 3.0 at 102.31), around 2/32 lower than yesterday at this time. Some unfavorable repricing was seen yesterday.
It has been a quiet morning ahead of today’s Fed meeting. The Dow is up 50 points. No more economic data will be released today. The Fed statement will be released around 2:00 et. Fed Chair Yellen’s press conference will begin around 2:30 et. No change in rates is expected, but investors will be looking for hints about the timing of future policy changes.
Today’s economic data caused little reaction. May Industrial Production fell 0.4% from April, below the consensus for a decline of just 0.2%. Weakness was seen in auto production. May PPI inflation was slightly higher than expected. The Empire State regional manufacturing index rose to 6.0, well above the consensus of -4.0