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MBS  +16/32 @ 101.27     10 Yr Treasury +15/32 @ 2.607       Dow -81@ 15,292

 

Last night, Congress passed the debt deal which will fund the government and raise the debt ceiling for a few months. Some investors had been hesitant recently to purchase government bonds due to the risk of default, however slight. When the deal seemed certain to pass, these investors began purchasing Treasuries and MBS in the middle of yesterday's session and have continued this morning. Today's Jobless Claims data caused little reaction. Weekly Jobless Claims dropped to 358K, above the consensus of 330K, as the shutdown had a bigger than expected impact.

Factory activity in the U.S. mid-Atlantic region slowed slightly in October, but firms' optimism about the future stayed at a 10-year high, a survey showed on Thursday. The Philadelphia Federal Reserve Bank said its business activity index slipped to 19.8 in October from 22.3 in September. The October figure was still well above economists' expectations for a reading of 15.0.

Top of Form Treasuries
17-Oct-13 Last Change 3-Month T-Bill 0.01% 0.00% 6-Month T-Bill 0.03% -0.01% 1-Year T-Bill 0.13% 0.00% 2-Year Note 0.31% -0.02% 3-Year Note 0.61% -0.03% 5-Year Note 1.35% -0.05% 10-Year Note 2.62% -0.04% 30-Year Bond 3.69% -0.03%

 

Top of Form Major Indices
17-Oct-13 Last Change 11th District COFI 0.956% 0.002% 1-Month LIBOR 0.173% -0.003% 6-Month LIBOR 0.359% -0.005% 12-Month LIBOR 0.620% -0.010% MTA Index 0.144% -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
17-Oct-13 Last Change 15-Year Fixed Freddie 3.31% 0.02% 30-Year Fixed Freddie 4.23% 0.01% 1-Year ARM Freddie 2.64% 0.01% 5/1-Year ARM Freddie 3.05% 0.02% Bottom of Form

 

 

 APOR (Changes Mondays)

30 Yr Fixed-  4.29%

15 Yr Fixed- 3.41%

5/1 ARM -      2.97%

7/1 ARM   -    3.28%

10/1-ARM -  3.79%

 

Economic Calendar

	Event	Actual	Cons.	Previous
Oct 13	IMF Meeting
Oct 14	Columbus Day
Oct 15	NY Empire State Manufacturing Index (Oct)		7.00	6.29
	Redbook index (MoM)			-0.5%
	Redbook index (YoY)			3.3%
	Fed's William Dudley speech
	3-Month Bill Auction			0.035%
	6-Month Bill Auction			0.06%
	Fed's Richard Fisher's speech
Oct 16	MBA Mortgage Applications (Oct 11)			1.3%
	Net Long-Term TIC Flows (Aug)			$31.1B
	Total Net TIC Flows (Aug)			$56.7B
	NAHB Housing Market Index (Oct)		58	58
	4-Week Bill Auction			0.35%
	52-week Bill auction			0.12%
	FOMC Member Pianalto Speech
	Fed's Beige Book
	Fed's George Speech
	Fed's Richard Fisher's speech
Oct 17	Fed's Richard Fisher's speech
	Building Permits (MoM) (Sep)		0.938M	0.918M
	Housing Starts (MoM) (Sep)		0.908M	0.891M
	Initial Jobless Claims (Oct 11)		357K	374K
	Continuing Jobless Claims (Oct 4)		2.935M	2.905M
	Philadelphia Fed Manufacturing Survey (Oct)		15.0	22.3
	EIA Natural Gas Storage change			90B
	EIA Crude Oil Stocks change (Oct 11)			6.807M
	Fed's Evans Speech
	Fed's George Speech
	Fed Minneapolis's Narayana Kocherlakota speech
Oct 18	American Petroleum Institute Monthly Report (Sep)
	CB Leading Indicator (MoM) (Sep)		0.6%	0.7%
	Fed's Evans Speech
	Fed's Tarullo speech