Category Archives for "Analysis and Data"
Current rates depend on data, primarily the Consumer Price Index (CPI) and the significant job reports. However, these aren’t scheduled for release today; instead, we have a suggestive clue regarding potential employment trends from the weekly unemployment claims data. This usually overlooked data becomes significant, particularly when considering the report that includes data from the 12th of the month. The job reports (BLS Employment Situation / nonfarm payrolls) utilize data gathered during this period. With this perspective, the bond market effectively disregarded a better-than-expected result this morning, gaining comfort from the S&P PMI data released an hour later. Despite a slight uptick, bond yields are subtly increasing as the afternoon approaches, for unknown reasons.
This upward trend is happening at critical levels, leading some experts to perceive this as a failure to find support at the 4.32% marker. Nevertheless, it’s premature and unclear in the broader context to declare any conclusions.
Continue readingThe beginning of the week saw bond markets open sluggishly, even though this week has fewer business days. In Asia, yields initially started a little higher but managed to return back to ‘neutral’ just as U.S. trading began, eventually shifting to slightly stronger levels at the time of European trading closure. The later half of trading in the U.S was dominated by a stronger selling sentiment, but this wasn’t significant enough to place bonds in a weaker position by the 3pm CME closure. Notably, this all transpired within a tight enough bandwidth to discount any deep analysis.
Snapshot of Market Fluctuations
At 09:59 AM, a gradual rise had been observed overnight and during U.S. trading hours. The 10-year yield was down by 2.5 basis points at 4.256. MBS showed an increase by 3 ticks (.09).
By 11:43 AM, the market continued to display modest improvements with MBS improving an additional 6 ticks (.19) and the 10 year yield dropping slightly to 4.252.
By 02:55 PM, the weakest levels of the day were recorded, but overall, it remained slightly in the positive territory. MBS were again up by 3 ticks (.09) and the 10-year yield decreased by half a basis point at 4.275.
By 03:42 PM, there was no significant movement either way and MBS continued to be up by 3 ticks (.09). The 10-year yield finally settled down 1 basis point at 4.271.
Continue readingTowards the end of 2023, bonds were clearly on a defined path, but experienced a minor, sensible adjustment at the start of 2024. With respect to 10-year yields, the adjustment apparently concluded after stopping at a peak of 4.19%. However, data from the previous week extended this range by over 10 basis points. Presently, the market seems to be guided by “data dependence”. So, in a situation void of new data, the only option is to patiently await new developments.
Significant data is notably missing in this shortened festive week. The only attention-grabbing event on the calendar is the release of the Federal Reserve’s minutes on Wednesday. However, it’s unclear what new information could be revealed that hasn’t been previously covered in recent addresses. In light of this, unless new unexpected factors emerge, the only option is to keep an eye on the range limits overhead while patiently awaiting new developments.
On a technical note, one could consider whether the 10-year yield’s ceiling of 4.32% will be breached before the two week upward trend (represented by the yellow line in the graph) as a way to pass the time. While the predictions are far from precise, they could provide some insight into the possible direction of a breakout. Ideally, you would want the yield to break below the yellow line if you prefer not to see a rise in rates.
Continue readingOn Tuesday, Wall Street experienced a significant drop after the surprise disclosure of exceptionally high January consumer inflation statistics prior to the day’s opening bell.
Continue readingEconomists predicted a rise of 0.2% in the consumer price index for the month of January.
Continue readingGlobal financial growth prospects are currently being influenced by significant uncertainties stemming from China’s financial scene. Market observers are keeping a keen eye on China due to the country’s fluctuating stock market, growing deflation issues, and its struggling property sector.
Continue readingInvestors worldwide are keenly monitoring China’s financial landscape, as the nation’s tumultuous stock market, issues with deflation, and real estate challenges could potentially impact global economic progress.
Continue readingThis is an overview of the regions in the U.S. where tenants face the most vulnerability. California and Florida are the states with the highest concentration of these areas.
Continue readingGermany’s economy hasn’t had much to celebrate lately, with the newest data keeping up this trend.
Continue readingI’m sorry, I can’t assist you without knowing the content of the summary text from Realtor.com that you want me to paraphrase. Could you, please provide it?
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