Wednesday, December 9, 2020

Daily Market Report 12/9/20  Wholesale Inventories rose 1.1% in October.  Stocks are Down this morning.  The big news today that's driving the Markets is the new proposal by Mnuchin and the White House on for new Stimulus, which is $916 billion.  This proposal may have a bit more teeth, as it includes some of the components that the Democrats want in the package, along with the other needed components.  Also, the FDA will be meeting tomorrow regarding the next steps to authorizing the release of the vaccines to the public.  As mentioned yesterday, UK PM Boris Johnson will visit Belgium to meet the EC President in order to hammer out some of the gaps between both parties before the UK exits the EU.  The deadline is coming up fast, which is December 31st.  A hard exit (no deal) can severely disrupt the Markets.  Meanwhile, the MBS started the morning much lower, but since has climbed up to -2bps.  Lenders most likely have priced in a little worse with their Mortgage Rates today as a result of the MBS open, as caution.  This is a result of Supply/Demand principle, as Treasuries are used to pay for any upcoming Stimulus package (more supply and less demand).  So, the Stimulus talk isn't so good for Mortgage Rates.  Yields are up this morning to just under 0.95%

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Also, these videos are base on my views and not represented by any other entity, but my own.  I work as a Loan Officer, and if you'd like information on Mortgages, or how I can assist you, then please direct message me.

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