Monday, June 2, 2014 -
Article by:
Joe Shamie - First Choice Loan Services -
June 2, 2014, 10:55am ET
Current Trend Direction: Sideways
Float/Lock Bias: Cautiously Floating
Current Price of FNMA 4.0% Bond: $105.75, -13bp
After hitting the May 2013 highs on Thursday, Mortgage Bonds are down a bit. But prices are still holding just above support at what were resistance levels the past couple of weeks.
The new trading month begins with the closely watched S&P 500 starting at a new record level of 1,923.57. Stocks are grinding higher again today after a report showed that China's manufacturing sector expanded at its fastest pace in five months.
This week's big event is the May Jobs Report that will be released on Friday, which includes Non-farm payrolls where it is expected that employers added 220K new workers last month, while the Unemployment Rate is expected to move to 6.4% from 6.3%. Today's economic data is limited to the May ISM Index (10:00) and will show the overall activity for national manufacturing.
There are no Treasury Note or Bond auctions this week.
On Thursday, the European Central Bank will meet and it is widely accepted that it will usher in easier money policies to kick start the region's economy. As we said last week and have been saying for quite some time, the problems in Europe are far from over and we may see a new round of QE announced.
We will start the week floating and appreciate that some big headline risk is coming our way as the week progresses. With pricing at the best level in a year start lining up your clients to lock just ahead of the Jobs Report.
Joe Shamie NMLS # 241432
First Choice Loan Services NMLS # 210764
First Choice Bank NMLS# 177877
866-970-3400 x-5135
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