http://MikesDailyMarketReport.com: The ADP reported a decline of 123k jobs in the Private Sector for the month of December. This is the first decline since the lockdowns began in March. However, Factory Orders rose by 1.0% in November. Stocks are Up this morning on news that there may be a Blue Sweep in the Georgia Runoffs. Results are not yet final, but it's appearing that there may be a sweep. The Uncertainty kept Stocks at bay for the past 2 months. MBS is way down today; Down 31bps (dropping below it's 25- and 50 DMA and approaching it's 100 DMA). Yields broke the Technical Ceiling and have risen above 1.0% since last March's lockdowns. What does this all mean for Mortgage Rates? They have gone up!!! This is due to a one party control, which will be able to pass their legislation without any checks and balances. This means that more debt (bonds and MBS) will be issued (supply/demand) to pay for their spending and printing of money, which will lessen the value of the dollar and raise inflation (enemy to bonds/MBS, as it erodes their value over time).
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