Monday, July 21, 2014 - Article by: Joe Shamie - First Choice Loan Services -
Monday - July 21, 2014, 10:45am ET
Current Trend Direction: Sideways to higher
Float/Lock Bias: Carefully FloatingCurrent Price of FNMA 4.0% Bond: $105.75, +16bp
Mortgage Bonds begin the week near unchanged levels in the absence of any economic data. Stock futures are declining as continued sanctions against Russia will be considered this week in Europe, due to the downing of Malaysian FL 17 last week and its continued military presence in Ukraine.
The week features a few notable economic reports with tomorrow's key inflation gauge in the Consumer Price Index along with Existing Home Sales followed by Weekly Initial Jobless Claims and New Home Sales on Thursday. There are no Note or Bond auctions this week.
Stock are lower due to the geo-political headlines out of Europe and Russia, which could support the Bond markets today. The heart of earnings season will take place this week with Microsoft, Netflix, Coca-Cola, Boeing and Amazon a few of the standouts. Better than expected earnings could push Stocks higher at the expense of Bonds
Technically, the 4% coupon is trading right at resistance at the 25-day Moving Average. With Stock prices under some pressure, we will begin the week floating, but as always, stay tuned, for sentiment can quickly reverse.
Joe Shamie NMLS # 241432
First Choice Loan Services NMLS # 210764
First Choice Bank NMLS# 177877
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