Market update 2

MBS +7/32 @ 103.22       10 Yr Treasury +4/32 @ 1.7900      DOW +45 @ 14847

 

While stocks have remained flat, it has been a volatile morning for MBS markets. The MBS rally this morning may be mostly due to global investors that are borrowing money in Japan at rates very close to zero and then investing in US bonds. These investors profit by "locking in" the spread between Japanese bonds and US bonds. The recent announcement about the massive expansion of the Bank of Japan's bond-buying program has made this trading opportunity more attractive to investors. In the US, weekly Jobless Claims dropped sharply to 346K, below the consensus of 365K. Today's data makes last week's jump in Jobless Claims look like a temporary distortion from the longer-term trend due to the Easter holiday. Import Prices declined 0.5%, matching expectations. No more economic data will be released today. The results from the 30-yr Treasury auction will come out around 1:00 et.

 

Top of Form Treasuries
11-Apr-13 Last Change 3-Month T-Bill 0.05% -0.01% 6-Month T-Bill 0.09% 0.00% 1-Year T-Bill 0.13% 0.00% 2-Year Note 0.23% 0.00% 3-Year Note 0.34% 0.00% 5-Year Note 0.72% -0.01% 10-Year Note 1.79% -0.01% 30-Year Bond 2.99% -0.01%

 

Top of Form Major Indices
11-Apr-13 Last Change 11th District COFI 0.999% 0.037% 1-Month LIBOR 0.200% 0.001% 6-Month LIBOR 0.439% -0.001% 12-Month LIBOR 0.720% -0.001% MTA Index 0.174% -0.003% Prime Rate 3.25% 0.00% Federal Funds Rate 0.25% 0.00% Discount Rate 0.75% 0.00%

 

Top of Form Mortgage Rates
11-Apr-13 Last Change 15-Year Fixed Freddie 2.74% -0.02% 30-Year Fixed Freddie 3.54% -0.03% 1-Year ARM Freddie 2.63% 0.01% 5/1-Year ARM Freddie 2.65% -0.03% Bottom of Form

 

 

 

APOR

30 Yr Fixed- 3.54%

5/1 ARM -     2.65%

 

	Event	Actual	Cons.	Previous
Apr 08	FOMC Member Pianalto Speech
	3-Month Bill Auction			0.075%
	6-Month Bill Auction			0.105%
	Fed's Bernanke Speech
Apr 09	NFIB Business Optimism Index (Mar)		92.3	90.8
	Redbook index (YoY) (Mar 31)			3.5%
	Redbook index (MoM) (Mar 31)			0.8%
	Fed's Lacker speech
	Wholesale Inventories (Feb)		0.5%	1.2%
	4-Week Bill Auction			0.075%
	3-Year Note Auction			0.411%
	Fed's Lockhart speech
Apr 10	MBA Mortgage Applications (Apr 5)			-4%
	Fed's Lockhart speech
	Fed Minneapolis's Narayana Kocherlakota speech
	EIA Crude Oil Stocks change (Apr 5)			2.707M
	10-Year Note Auction			2.029%
	FOMC Minutes
	Monthly Budget Statement (Mar)		-112.5B	-203.5B
	Fed's Richard Fisher's speech
Apr 11	Philadelphia Fed's Plosser speech
	Fed's Bullard speech
	Import Price Index (MoM) (Mar)		-0.1%	1.1%
	Export Price Index (MoM) (Mar)		0.1%	0.8%
	Export Price Index (YoY) (Mar)			1.5%
	Import Price Index (YoY) (Mar)			-0.3%
	Initial Jobless Claims (Apr 6)			385K
	Continuing Jobless Claims (Mar 30)			3.063M
	EIA Natural Gas Storage change (Apr 5)			-94B
	30-Year Bond Auction			3.248%
Apr 12	Producer Price Index (MoM) (Mar)		0.0%	0.7%
	Producer Price Index (YoY) (Mar)		1.9%	1.7%
	Producer Price Index ex Food & Energy (MoM) (Mar)		0.2%	0.2%
	Producer Price Index ex Food & Energy (YoY) (Mar)		1.7%	1.7%
	Retail Sales (MoM) (Mar)		0.2%	1.1%
	Retail Sales ex Autos (MoM) (Mar)			1%
	Federal Reserve Bank of Boston President Eric Rosengren Speech
	Reuters/Michigan Consumer Sentiment Index (Apr) Preliminar			78.6
	Business Inventories (Feb)			1%