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.
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