MBS are up +3/32 (FNMA 30-yr 3.5 at 103.08), around 1/32 higher than yesterday at this time.
This morning, investors are waiting for the outcome of today’s Fed meeting. The Dow is down 10 points. Existing Home Sales will be released at 10:00 et. The Fed announcement will come out at 2:00 etand Fed Chair Yellen’s press conference will begin at 2:30. Investors widely expect the Fed to announce that it will soon begin to reduce the quantity of Treasury and mortgage securities on its balance sheet. Any information about the pace of future rate hikes might have a greater impact on MBS.
MBS are down -8/32 (FNMA 30-yr 3.5 at 103.19), around 2/32 below morning levels. Investor relief that the storm damage was not even worse and that North Korea did not conduct additional weapon tests hurt safer assets such as MBS this morning. Weaker than average demand for the 3-yr Treasury auction later pushed MBS to their lows. No economic data was released today. The Dow is up 250 points. Tomorrow, JOLTS will be released at 10:00 et. The results from the 10-yr Treasury auction will come out around 1:00 et.
The monthly rollover will take place overnight for FNMA and FHLMC 30-yr securities.
MBS are up +1/32 (FNMA 30-yr 3.5 at 103.20), around 3/32 higher than yesterday at this time.
The Employment report was weaker than expected in nearly every area, yet there was little lasting impact on MBS. Against a consensus forecast of 180K, the economy added just 156K jobs in August. In addition, downward revisions subtracted 21K jobs from the results for prior months. The unemployment rate increased from 4.3% to 4.4%, above the consensus for a flat reading of 4.3%. Average hourly earnings, an indicator of wage growth, also fell short of expectations. They were 2.5% higher than a year ago, the same annual rate as last month. Since the data had been gathered before the storm hit, the results do not reflect any distortions from the hurricane in Texas, The Dow is up 50 points. The ISM national manufacturing index, Construction Spending, and Consumer Sentiment will be released at 10:00 et.