Fed day is a big day right now bonds off rates off close to .125% today

MBS  -13/32 @ 102.09    10 Yr Treasury  -14/32 @ 1.9810        DOW  +58@ 15,445

 

Investors are focused on the Fed today. Volatility has been very high over the last couple of days as investors try to anticipate when the Fed will alter its bond buying program. Between Fed Chief Bernanke's testimony and the Fed Minutes, investors are hoping to receive some guidance in this area today. The Fed Minutes from the May 1 Fed meeting will be released at 2:00 et.

 

 

MBS are down -13/32 (FNMA 30 yr 3.0 at 102.09), 16/32 below morning levels, and 25/32 below the recent highs. Bernanke's latest comments opened the door for tapering to begin sooner than expected.

Home resales rose in April to the highest level in nearly 3-1/2 years, which should support the housing sector and the overall economic recovery. The National Association of Realtors said on Wednesday existing home sales advanced 0.6 percent to an annual rate of 4.97 million units, the highest level since November 2009. The increase, however, was below expectations for a rise to a 4.99 million-unit rate last month. Compared to April last year, home resales were up 9.7 percent.

Top of Form Treasuries
22-May-13 Last Change 3-Month T-Bill 0.03% -0.01% 6-Month T-Bill 0.08% 0.00% 1-Year T-Bill 0.10% 0.00% 2-Year Note 0.23% 0.00% 3-Year Note 0.37% -0.02% 5-Year Note 0.79% -0.03% 10-Year Note 1.91% -0.01% 30-Year Bond 3.13% 0.00%

 

Top of Form Major Indices
22-May-13 Last Change 11th District COFI 0.967% -0.032% 1-Month LIBOR 0.195% -0.001% 6-Month LIBOR 0.418% 0.000% 12-Month LIBOR 0.686% 0.000% MTA Index 0.169% -0.005% Prime Rate 3.25% 0.00% Federal Funds Rate 0.25% 0.00% Discount Rate 0.75% 0.00%

 

Top of Form Mortgage Rates
22-May-13 Last Change 15-Year Fixed Freddie 2.69% 0.08% 30-Year Fixed Freddie 3.51% 0.09% 1-Year ARM Freddie 2.55% 0.02% 5/1-Year ARM Freddie 2.62% 0.04% Bottom of Form

 

 

APOR

30 Yr Fixed- 3.51%

5/1 ARM -     2.62%

 

 

ECONOMIC CALENDAR

	Event	Actual	Cons.	Previous
May 20	Chicago Fed National Activity Index (Apr)	-0.53		-0.23
	6-Month Bill Auction			0.08%
	3-Month Bill Auction			0.045%
	Fed's Evans Speech
May 21	Redbook index (MoM) (May 12)			0.7%
	Redbook index (YoY) (May 12)			2.8%
	Treasury Sec Lew Speech
	4-Week Bill Auction			0.01%
	Fed's Bullard speech
May 22	MBA Mortgage Applications (May 17)			-7.3%
	Existing Home Sales Change (MoM) (Apr)		1.5%	-0.6%
	Existing Home Sales (MoM) (Apr)		4.99M	4.92M
	Fed's Bernanke testifies
	EIA Crude Oil Stocks change (May 17)			-0.624M
	FOMC Minutes
May 23	Fed's Bullard speech
	Initial Jobless Claims (May 17)		345K	360K
	Continuing Jobless Claims (May 11)		3.000M	3.009M
	Markit Manufacturing PMI (May) Preliminar		53.0	52.1
	Housing Price Index (MoM) (Apr)		0.8%	0.7%
	American Petroleum Institute Monthly Report (Apr)
	New Home Sales (MoM) (Apr)		0.425M	0.417M
	New Home Sales Change (MoM) (Apr)		1.9%	1.5%
	EIA Natural Gas Storage change			99B
	Kansas Fed manufacturing activity (May)		-5	1
May 24	Durable Goods Orders (Apr)		1.5%	-5.7%
	Durable Goods Orders ex Transportation (Apr)		0.5%	-1.4%