Monday, July 28, 2014 - Article by: Joe Shamie - First Choice Loan Services -
Monday - July 28, 2014, 10:50 am ET
Current Trend Direction: Sideways
Float/Lock Bias: Carefully floating
Current Price of FNMA 4.0% Bond:$105.53, Unchanged
Mortgage Bonds begin, what will be a very big news week, near unchanged. Wednesday brings the Fed Statement and GDP and Friday is the Jobs Reportwhew!
And if that were not enough, the Treasury will auction off $93B in securities beginning today with $29B in 2-Year Notes.
On Friday, the Labor Department is expected to report that employers added 225K new workers in July and where on the surface it seems like the job market has recovered substantially...the June jobs report revealed that there are currently 7 million Americans involuntarily working part time. Part time jobs grew by 799,000 while full time jobs decreased by 523,000. The weak internals of the report coincide with the sluggish GDP numbers.
Technically the Bond is fighting resistance at both the 25 and 50-day Moving Average, as evidenced by the MMG Bond chart. The technicals will take a backseat to the important news events of the week.
We are going to continue to float into Wednesday's Fed statement if the market allows us. But as always, stay tuned for any sudden changes.
Joe Shamie NMLS # 241432
First Choice Loan Services NMLS # 210764
First Choice Bank NMLS# 177877
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