http://MikesDailyMarketReport.com: The IHS Markit PMI released their October Manufacturing and Services data today. The Manufacturing dipped a little bit to 59.2; while the Services rose to 58.2. Any number above 50 for these indices indicates expansion/optimism. Stocks are Down today, after being in positive territory to start the day. However, a speech by Fed Chairman Powell jolted both Markets a bit. He indicated that the Fed is on pace to taper this year; it's too early for any rate hikes; and that inflation will drag into 2022. This will be his last speech prior to the FOMC in about 2 weeks. We'll find out if they will begin tapering immediately or (maybe) in December. In other news, Evergrande made their past due payments to their foreign bondholders today. Also, Congress is still negotiating the Spending Bill. Currently, MBS is Up 9-11bps, which is off it's earlier highs (prior to Fed Chair's speesh). Lenders came out with a little better pricing this morning; however, yesterday, MBS finished Down 36bps; so, we're better than yesterday's close, but not yet to it's opening levels. As such, Lenders had a few price changes for the worse yesterday. The good news is that Yields are falling a bit today (down to just under 1.64%, after touching 1.70% yesterday). This might provide some relief to MBS to rally a bit more and get back some of our losses.
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