Search This Blog

Thursday, July 30, 2015

Mortgage Bond Market Analysis - Jobless Claims Thursday

We've got more disappointing data, though not too bad and we still don't have any real direction in the market.  The market improved slightly yesterday after the Fed's interest rate announcement; after being down 19 basis points or so, the benchmark bond closed down 8 basis points.  This morning, GDP came in at 2.3% vs. consensus estimates of 2.5%.  Jobless claims came in at 267K vs. estimates of 272K - better than expected but worse than last weeks numbers by 12K.

The FNMA benchmark bond is currently 22 basis points off it's low and 6 basis points down from its high for the day, it's up 5 basis points at 103.36 - 9 basis points above the 1st level of resistance.  The RSI shows that the bond is still right at the overbought threshold but there still seems to be a positive bias in favor of bond buying considering weak economic data and the concerns regarding China's market and Greece.  Like I have mentioned throughout the week, I would float and see if more gains can be on their way but, like always, keep a watchful eye on the market so that you can react fast in case of any sudden selling in the mortgage bond market.

Feel free to contact me if I can help with anything mortgage-related.  Make it a great day.

No comments: