Wednesday, March 11, 2020

Daily Market Report 3/11/20 The Consumer Price Index rose 0.1% in February, however, it's YoY dropped from 2.5% to 2.3%.  It's Core, excluding food and energy, rose 0.2%; and it's YoY rose from 2.3% to 2.4%.  Based on how the economy is beginning to shape up, inflation will drop, so this will be less of a concern for the Fed.  Stocks are losing their gains from yesterday's trade this morning, after the DOW closed Up 1100 yesterday and is currently Down about 1000.  Many countries across the globe are announcing interest rate cuts along with possible stimulus measures presented by their gov't.  MBS started in positive territory this morning, by as much as 20bps, however, that has dissolved and dropped dramatically.  At the time of creating this report, it was Down 47bps, and even dropped 66bps.  The Good News is the Trend Line is currently holding, which means that the trend for MBS is to continue rising.  Right now, we're just touching/testing the bottom of the Trend Line.  The previous high spikes that we saw earlier, were too fast and too much, so we got a whipsaw effect.  Stay patient, as it will sort itself out!  Yields are currently sitting around .78%.  There will be a 10 Year Treasury Auction later today, which can help Mortgage Rates, so stay tuned!

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