http://MikesDailyMarketReport.com: The Empire State Index dropped from 43.0 in July to 18.3 in August. Even though 18.3 is still a good number, it's the amount of the drop is something that will concern investors, as we deal with the Delta variant. Meanwhile, Stocks are all in Negative Territory today, as Investors see a pretty steep drop in China's factory output and retail sales, as they lockdown for further control of the Delta variant; and it's potential impact here in the US. Also, Investors begin to look into the impact of the Taliban's recapture of Afghanistan, as US forces leave the country. Based on the higher jobs data of late, there's now speculation that the Fed may begin talking about tapering at it's September meeting. Investors will be watching the Jackson Hole event later this month for more indicators of the timeline of this discussion. MBS started the morning off a bit higher (+13bps) and above it's 25 DMA; however, it has subsided a bit and is currently Up only 6bps (just below it's 25 DMA). Many of the Lenders whom price early (based on east coast) may have priced a bit better today, but may be re-pricing for worse pricing (more in line with pricing from Friday's close). Yields are currently a hair under 1.25%, as it too, tested a Technical floor earlier, only to pull back just above it.
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