Monday, April 7, 2014 - Article by: Joe Shamie - First Choice Loan Services -
Monday - April 7, 2014, 11:55am ET
Current Trend Direction: Sideways to higher
Float/Lock Bias: Carefully Floating
Current Price of FNMA 4.0% Bond: $104.25, +9bp
Mortgage Bonds are trading near unchanged despite Stock prices in negative territory.
The week's economic calendar is light with just the Producer Price Index, Consumer Sentiment and Initial Jobless due near the end of the week. The FOMC minutes from the March 19 meeting may offer some volatility when released on Wednesday at 2:00pm ET. The Treasury will be selling a total of $64B in 3 ($30B, Tues) and 10-year ($21B, Weds) Notes along with the 30-year Bond ($13B, Thurs). The monthly Bond Rollover will take place after the close of trading on Tuesday.
The Bond made a nice recovery post Jobs Report, with prices breaking back above a couple of resistance levels. However we are still concerned longer-term as the 4% Coupon remains in a Falling Channelthis means that over time, prices continue to slip lower with rates edging higher. You can clearly see this on the Bond page as prices are well below the price peaks seen in mid-January.
We are floating, but ever so carefully. Have a great week!
Joe Shamie NMLS # 241432
First Choice Loan Services NMLS # 210764
First Choice Bank NMLS# 177877
Didn't find the answer you wanted? Ask one of your own.