Same Waiting, Slightly Less Comfort

After the last CPI report sent rates back down to the prevailing summertime range, we figured we'd be waiting until tomorrow's Fed day for the next big shoe to drop.  While that's generally been the case, rates haven't managed to stay perfectly inside the range.  The closer we get to the day itself, the more upward pressure we're seeing on yields. Overnight trading offered some clues about the pre-Fed weakness.  The typical correlation between US and EU bonds broke down in a fairly noticeable way with Treasuries weakening while EU bonds rallied.  Granted, neither move has been extreme, but the divergence is notable as it provides clues to Treasury-specific anxiety ahead of the Fed.  "Anxiety" in this context could be as simple as traders exiting long positions taken in the wake of the supportive bounce 2 weeks ago, or even the mini supportive bounce last week.  There's also always a possibility that Treasury auctions add some undue pressure when they coincide with Fed week.
http://dlvr.it/Ssjqd8

Comments

Post a Comment

Popular posts from this blog

#ForBuyers #ForSellers #HousingMarketUpdates #BuyingMyths Experts Project Home Prices Will Rise over the Next 5 Years: Even with so much data showing home prices are actually rising in most of the country, there are still a lot of people who worry there will be another price crash in the immediate future. http://dlvr.it/SzgmjG

Image
#ForBuyers #ForSellers #HousingMarketUpdates #BuyingMyths Experts Project Home Prices Will Rise over the Next 5 Years: Even with so much data showing home prices are actually rising in most of the country, there are still a lot of people who worry there will be another price crash in the immediate future. http://dlvr.it/SzgmjG /> http://dlvr.it/Szgmz4
Read more

Optimization, Document Tracking, MSR Financing Products; Saving Money on Credit Reports and CE

Image
As President Jimmy Carter celebrated his 99th birthday seven months into hospice, welcome to the 4th quarter! (Will lenders experience any “Q-4-ia”? Say out loud.) Let’s talk U.S. lists! California, Indiana, Michigan, Texas, and Virginia are top five in pumpkin growing. The National Association of Realtors, U.S. Chamber of Commerce, Pharmaceuticals, American Hospital Association, and Blue Cross/Blue Shield are the leading five lobbying spenders. And you can add the Internal Revenue Service's Income Verification Express Service (IVES) to the list of "essential" government activities that would continue to operate in the event of a government shutdown. We won’t have to worry about that until mid-November, as the government kicked the can down the road and passed a Continuing Resolution that averts a government shutdown to November 17. HUD (Ginnie Mae and FHA included), USDA, and the VA will continue to operate temporarily uninterrupted, and for a bonus the bill also include...
Read more

Builders Respond to the Need for Less Expensive Homes Builders are responding to the need for less expensive homes. Let’s connect to go over the process of buying a newly built home and find the right one for you. #affordablehomes #homebuilders www.DanFreshley.com

Image
Builders Respond to the Need for Less Expensive Homes Builders are responding to the need for less expensive homes. Let’s connect to go over the process of buying a newly built home and find the right one for you. #affordablehomes #homebuilders www.DanFreshley.com http://dlvr.it/SvX6fV
Read more