Wednesday, August 12, 2020

Daily Market Report 8/12/20

 http://MikesDailyMarketReport.com: The Consumer Price Index rose 0.6% in July, which it's YoY jumped up from 0.6% to 1.0%.  The Core CPI (excluding food and energy) also rose 0.6% in July, and it's YoY increased from 1.2% to 1.6%.  Stocks are Up this morning on overall good sentiment regarding the improving economic trends and progress in COVID-19 between vaccinations coming out soon and cases dropping.  MBS dropped a bit further yesterday (closed down 34bps), so pricing worsened yesterday; and this morning, it was down further, but it's currently Down 3bps.  This worsening trend will push Lenders to come out with a little worse pricing to cover themselves from any further Market deterioration throughout the day.  Yields have skyrocketed over the past few days; as the Markets compete with Stocks for investment dollars, over supply for auctions this week and the Fed's new stance on Inflation.  They are currently around 0.66%.

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