Friday, September 10, 2021

Daily Market Report 9/10/21  The Producer Price Index (PPI) rose 0.7% in Aug.  It's Core PPI (excludes food and energy) rose 0.6%; however, it's YoY rose from 6.2% in July to 6.7% in Aug.  The PPI measures inflation on the Wholesale sector.  This index doesn't always receive the Market's respect, as it doesn't always carry over to the Consumer Market.  Lastly, the Wholesale Inventories continued the pace of 0.6% growth in July.  Stocks started the morning in Positive Territory after Biden's address yesterday, which he is looking to mandate vaccinations on a Federal level.  Investors are hopeful that this will help to fully reopen the economy.  Also, Biden apparently had positive conversation with his Chinese Counter-part yesterday, easing some geopolitical concerns.  More Fed Members, including Cleveland's Fed Member Mester, are stating they weren't swayed by the latest Jobs data and still feel the Fed should begin tapering this year.  The FOMC will be in 2 weeks, so we may hear an announcement regarding this sentiment from Fed Chair Powell after the meeting.  Meanwhile, MBS is currently Down 5bsp, so this isn't enough to alter Mortgage Rates, which will remain Unchanged.  Yields climbed a little today, and are Up to 1.33%.  MBS and Treasuries weren't much affected by the PPI because of the decline on the month-over-month (MoM), which the Fed has said it is transitory.

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