10yr yields are now decisively below the levels seen BEFORE the last CPI report (the one that caused a jump from the 4.1’s to the 4.3’s). This has been accomplished without any shockingly downbeat econ data, and without the market ramping up bets on a friendlier rate trajectory from the Fed. In other words, it’s some combination of supply/demand technicals (Treasury auction composition and Fed QT tapering effects) and, more importantly, a legitimate belief that economy is not at risk of reigniting inflation concerns. On that note, Friday’s jobs report is in a position to undo much of the recent improvement if it makes a strong counterargument. The recent data and the bond market response are essentially daring the jobs report to surge.
Jobless Claims
217k vs 215k f’cast, 217k prev
Continued Claims
1906k vs 1889k f’cast, 1898k prev
08:37 AM
Stronger on data and ECB announcement. 10yr down 3.9bps at 4.069. MBS up 5 ticks (.16) before accounting for roughly 2 ticks (.06) of illiquidity.
11:49 AM
Gains erased in moderate, steady volume, and before Powell testimony. MBS up only 2 ticks (.06) and 10yr unchanged at 4.108.
02:37 PM
Weakest levels just before 1pm and holding modest gains since then. 10yr down half a bp at 4.104. MBS up 3 ticks (.09).
03:30 PM
Near best levels in MBS, up an eighth of a point. 10yr down 1.6bps at 4.092. Shorter-term Treasuries are doing even better.
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What’s Up With Stronger Bonds Despite Stronger GDP?
By:
Matthew Graham
Thu, Jan 25 2024, 3:27 PM
What’s Up With Stronger Bonds Despite Stronger GDP?
We’re not huge fans of the GDP report as a consistent market mover for bonds/rates, but if any GDP release has a chance, it’s the “advance” (which is the first of 3 releases for any given quarter). Today’s was quite a bit higher than the median forecast (3.3 vs 2.0). If the market were truly interested in reacting to the economic implications of that number, we likely would have seen yields move higher. Instead, bonds rallied. While there were other components of the report that were more bond friendly as well as other economic reports that were more downbeat, traders were at least as interested in the spillover from European trading as today’s ECB announcement was seen as more dovish than expected.
Jobless Claims
214k vs 200k f’cast, 189k prev
Durable Goods
0.0 vs 1.1 f’cast, 5.5 prev
Q4 GDP
3.3% vs 2.0 f’cast
GDP Deflator
1.5 vs 2.3 f’cast
08:43 AM
Modestly stronger after 8:30am econ data. 10yr down 4bps at 4.14%. MBS up about 1 tick (.03) after accounting for illiquidity.
11:06 AM
resilience remains with help from Europe. 10yr down 5.2bps at 4.128. MBS up 6 ticks (.19).
12:20 PM
Some weakness in Treasuries, but not spilling over to MBS. 10yr down 3.7bps at 4.143. MBS up 7 ticks (.23).
02:30 PM
Holding near best levels after decent 7yr auction. 10yr down 5.4 bps at 4.126. MBS up 7 ticks (.23).
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Bear Stearns reported a larger-than-expected writedown in its mortgage portfolio, leading its first quarterly loss in its 84-year history.
The nation’s fifth-largest investment bank, who is also a mortgage lender, took a $1.9 billion writedown in the quarter ended November 30, significantly larger than its earlier estimate in November of $1.2 billion.
“The continued repricing of credit risk and the severe dislocation in the structured products market led to illiquidity in the fixed-income markets, lower levels of client activity across the fixed-income sector and a significant revaluation of mortgage inventory,” Bear Stearns said in the earnings release.
The fiscal fourth-quarter loss after preferred dividends was $859 million, or $6.90 per share, compared to a profit of $558 million, or $4 per share, a year ago.
The company reported negative net revenue of $379 million, compared to revenue of $2.41 billion a year earlier.
It’s likely 2007 is a year Bear Stearns would prefer to soon forget, as profit during the year fell 90 percent from the year-ago period to a meager $212 million.
“We are obviously upset with our 2007 results, particularly in light of the fact that weakness in fixed income more than offset strong and, in some areas, record-setting performance in other businesses,” Chief Executive Jimmy Cayne said in a statement.
Chief Financial Officer Sam Molinaro said during a conference call with analysts that the company cut 1,400 jobs, or about 9 percent of its workforce during the quarter amid ongoing turmoil in the credit markets.
The firm incurred $100 million in severance costs as a result of the layoffs, but they will offset operating costs by more than $250 million, helping to boost profitability in 2008, Molinaro added.
Earlier this week, Bear Stearns cut another 150 jobs as it shut down its loan production operations in Irvine, CA.
The company is also being sued by Barclays, who claims Bear Stearns hid negative information about the performance of two subprime hedge funds the English bank had invested in.
Shares of Bear were down 16 cents, or 0.18%, to $90.44 in late morning trading on Wall Street, just narrowly above their 52-week low of $89.55.
Negative Trend Overall, But Bonds Bounced Back Today
By:
Matthew Graham
Fri, Jan 19 2024, 4:54 PM
Negative Trend Intact For Now
January has marked a modest but noticeable shift in bond market momentum and Friday provides the latest evidence. While we’re content to view most of the recent weakness as a logical byproduct of decent economic data, there’s certainly also an element of momentum that seems to be in play. Friday’s evidence comes in the form of selling pressure that began right at the 8:20am CME open. The 10am econ data added to the selling, but it has since been shaken off. We’re left with modest weakness heading into the mid-day hours, but yields are nonetheless at their highest levels in more than a month.
Existing Home Sales
3.78m vs 3.82m f’cast, 3.82m prev
Consumer Sentiment
78.8 vs 70.0 f’cast, 69.7 prev
1yr inflation expectations
5yr inflation expectations
10:10 AM
10yr yields are now up 5bps to the highs of the day at 4.192 and MBS are down 6 ticks (.19).
02:02 PM
Bouncing back into the PM hours. 10yr now up only 1.7bps at 4.159 and MBS down 3 ticks (0.09).
03:44 PM
Holding modest losses into the close. 10yr up less than 1bp at 4.149. MBS down 2 ticks (.06).
04:52 PM
Squeaking into positive territory after hours. 10yr down 1.8bps at 4.124. MBS showing a 1 tick (.03) loss, but it’s actually more like a tick or two of an improvement after accounting for illiquidity.
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The nation’s top mortgage lender reported a fourth-quarter loss of $422 million, or 79 cents per share, compared with income of $622 million, or $1.01 per share, the same time last year.
The results greatly exceeded expectations of analysts polled by Thomson Financial who had forecast a loss of 30 cents per share for the quarter.
Revenue for the quarter totaled $1.2 billion, a 58 percent decline from revenue of $2.8 billion in the same quarter last year.
For the full year, Countrywide reported a loss of $704 million, or $2.03 per share, the company’s first annual net loss in more than 30 years.
In 2006, the Calabasas-based home loan lender reported net income of $2.7 billion, or $4.30 per share.
Interestingly, just months ago Chief Executive Angelo Mozilo had predicted that the company would return to profitability in the fourth quarter, a statement most took with a grain of salt.
“While considerably improved from the previous quarter, Countrywide’s results for the fourth quarter of 2007 were adversely impacted by further credit deterioration across the industry and continued illiquidity in the secondary mortgage markets,” Mozilo said in a statement Tuesday.
Despite the huge loss, Reuters reported that Bank of America CEO Ken Lewis said, “everything is a go” at a Citigroup financial services conference he was attending today.
During the quarter, Countrywide set aside $924 million for credit losses, took a charge of $87 million related to layoffs, and an $831 million impairment charge tied to securities backed by prime home equity lines of credit.
Countrywide also lost $394 million related to the write-down of $7 billion in non-agency loans transferred to its held-for-investment (HFI) portfolio.
Delinquencies Soar
As of the end of 2007, 33.64 percent of the subprime loans the company serviced were delinquent, up from 29.08 percent in the third quarter and 21.22 percent a year ago.
And those who were 90 days or more behind on mortgage payments increased to a whopping 17.25 percent, up from 7.34 percent a year ago.
For the total servicing portfolio, delinquencies rose to 8.64 percent in the fourth quarter, up from 7.12 percent in the third quarter, and 5.30 percent a year ago.
A staggering 3.78 percent of all loans held in the company’s loan portfolio were 90 days or more delinquent, up from 1.55 percent a year ago.
Countrywide also holds nearly $2.9 billion in total non-performing loans, including $1.6 billion without mortgage insurance.
Loan originations fell by nearly 50 percent in the quarter, totaling just $69 billion, down from $124 billion in the same period a year ago.
Fundings for all of 2007 stood at $416 billion, down from $468 billion in 2006.
The company’s loan servicing portfolio grew to $1.47 trillion as of December 31, up from $1.29 trillion a year ago.
Meanwhile, assets held by Countrywide Bank FSB climbed to $113 billion, up from $83 billion in the same quarter last year.
Shares of Countrywide were up 26 cents, or 4.37 percent to $6.21 in midday trading on Wall Street.
Huge Rally as Dots Deliver and Powell Stays Out of The Way
By:
Matthew Graham
Wed, Dec 13 2023, 5:02 PM
Huge Rally as Dots Deliver and Powell Stays Out of The Way
It may have seemed that we were paying too much attention to today’s dot plot on the approach, but hindsight suggests it could not have been overdone. Rates plummeted as the dots revealed that September’s big revision was completely erased (in Sept, Fed members priced in 50bps of “higher for longer in 2024”). After the dots, some market watchers worried that Powell would push back on the rally in order to temper the volatility. He did not. He simply said the same things he’s been saying. Hikes are likely done unless data manages to surprise in an inflationary way. Bonds rejoice across the curve.
Core PPI m/m
0.0 vs 0.2 f’cast
09:46 AM
Gradually stronger overnight with modest additional gains after PPI data. MBS up 5 ticks (.16) and 10yr down 4bps at 4.17.
10:24 AM
Some illiquidity in MBS, currently up 3 ticks (.09), but briefly showing as being down more than an eighth. 10yr down 3.6bps at 4.174
01:35 PM
A bit weaker ahead of the Fed. MBS still up 1 tick (0.03) but down 3-4 ticks from highs. 10yr down 4.4bps on the day at 4.166.
02:07 PM
First move is stronger after the DOTS. 10yr down 11bps at 4.10. MBS up half a point in 5.5 coupons.
03:36 PM
Mostly holding massive gains seen during Powell’s press conference. 10yr down 18bps at 4.03. MBS up nearly a point in 5.5 coupons and nearly 5/8ths in 6.0 coupons.
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Wednesday’s bond market losses rained on Tuesday’s post-CPI parade. Justification was adequate, with Retail Sales coming in 0.2 higher than expected, but the implications for the near future were uncertain. Were bonds only reacting to the data or was the CPI rally overdone to some small extent? Today’s session helped answer those questions. All it took was a modest miss in Jobless Claims and a few other 2nd tier reports for bonds to fully erase Wednesday’s losses.
Jobless Claims
231k vs 220k f’cast, 218k prev
Continued Claims
1865k vs 1847k f’cast, 1833k prev
Philly Fed Index
-5.9 vs -9.0 f’cast/prev
Philly Fed Prices Paid
14.8 vs 23.1 prev
Industrial Production
-0.6 vs -0.3 f’cast, +0.1 prev
08:47 AM
Slightly stronger overnight with additional gains after AM econ data. 10yr down 8bps at 4.457. MBS up just over a quarter point, but closer to 3/8ths after adjusting for illiquidity.
11:26 AM
Best levels of the day about an hour ago, but giving up ground since then. MBS up 6 ticks (.19) before accounting for illiquidity (8-10 ticks otherwise). 10yr yield down 7.2bps at 4.465.
02:14 PM
Flat near best levels. MBS up 14 ticks (.44) and 10yr down 8.8bps at 4.449.
03:20 PM
No change from last update. 10s hit the 3pm close at the exact same 4.445 level as Wednesday. MBS still up 14 ticks.
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This is a sponsored partnership with The Entrust Group. Having more options for your retirement savings is always nice. And that’s where self-directed IRAs (SDIRAs) come in. These tax-advantaged accounts allow you to invest in real estate, small businesses, private equity, gold, oil, and more. An SDIRA differs significantly from an IRA or a 401k…
This is a sponsored partnership with The Entrust Group.
Having more options for your retirement savings is always nice.
And that’s where self-directed IRAs (SDIRAs) come in. These tax-advantaged accounts allow you to invest in real estate, small businesses, private equity, gold, oil, and more. An SDIRA differs significantly from an IRA or a 401k from a brokerage, where your options are limited to traditional assets like stocks, bonds, and mutual funds.
SDIRAs do give you more choices, but there is more work needed from you as they are a tad more complicated.
Key Takeaways
Self-directed IRAs can diversify your portfolio with different kinds of alternative assets.
SDIRAs can be set up as traditional or Roth IRAs.
There are cons to having an SDIRA, such as possible scams and the need for increased due diligence on the part of the account holder.
What is a Self-Directed IRA? – Complete Guide
So, what is a self-directed IRA?
A self-directed IRA (SDIRA) is simply an IRA in the eyes of the IRS.
But there is a big difference.
The most significant change with using an SDIRA is that you can invest in assets that are different from a standard retirement account (such as real estate, gold, bitcoin, and more – otherwise known as “alternative assets”), AND you can still use the same tax benefits as any other IRA.
Every investment and transaction is made on your request – not at the discretion of a financial institution.
Why have I never heard of a self-directed IRA?
Okay, so until recently, I had yet to hear of a self-directed IRA. You may not have either.
This is because SDIRAs are less common than the typical IRA you might already have. There are many different options for building your retirement portfolio out there, and this one requires more work on your end, so it’s less commonly used.
But, SDIRAs do have a wide range of potential. They are helpful for investors who want to diversify their retirement portfolio with assets beyond the usual stocks and bonds. In particular, they are an excellent option for investors with expertise in a specific area, like real estate or startups. They allow investors to use their existing retirement funds to invest in these types of assets to better take advantage of their own experiences.
How is a self-directed IRA different from a regular IRA?
The main difference between a self-directed IRA and one that is not self-directed is the different investment options available. SDIRAs can invest in alternative assets such as real estate, private businesses, precious metals, etc. However, standard IRAs are limited to stocks, bonds, and mutual funds.
If you’re looking to diversify your assets, then this may be a retirement account that could be great for you.
Types of self-directed IRAs
With SDIRAs, you can still receive the same tax benefits as an IRA holding publicly traded assets.
There are two main categories of self-directed accounts: traditional and Roth. Both have tax advantages, but they differ in how your contributions and withdrawals are taxed.
Traditional self-directed IRA – Your contributions are made with pre-tax dollars, which could lower your taxable income. There are also no income limits on contributions. When withdrawing the funds at retirement, you pay taxes on the distributions.
Roth self-directed IRA – Your contributions are made with after-tax dollars, so they don’t reduce your taxable income. All qualified withdrawals at retirement will be tax-free, including any gains your investments have made.
It’s essential to evaluate your financial situation and goals when choosing the type of SDIRA that’s best for you. There are also income and contribution limits to remember, mainly as these are updated annually.
How does a self-directed IRA work?
To invest with a self-directed IRA, you’ll have to open an account with a financial institution offering SDIRAs, often called a custodian, administrator, or recordkeeper.
After that, you can transfer or rollover money from an existing IRA or 401(k) into your SDIRA and look for an asset to invest in. You’ll be in charge of all asset decisions (this means that it’s your job to do as much research as you can), as well as ongoing account management.
It’s crucial to remember: per IRS rules, the custodian you choose does not help you to make investment choices. There are also other rules and regulations you must follow (you can read more about this at Self-Directed IRA Rules), such as avoiding prohibited transactions and staying within the annual contribution limits.
What Can You Invest In With A Self-Directed IRA?
A self-directed IRA lets you invest in various assets compared to regular IRAs.
Common investment choices
With a self-directed IRA, you can invest in assets such as:
Real estate – This could be rental properties, hotels, parking garages, or even empty land.
Precious metals – You can invest in physical gold, silver, platinum, and palladium.
Private equity – This includes investing in private companies not listed on public stock exchanges, including small businesses and start-ups.
Cryptocurrencies – Some self-directed IRAs allow investing in digital currencies like Bitcoin and Ethereum.
Commodities – You can invest in oil, gas, sustainable energy, and more.
Prohibited investments in self-directed IRAs
While there are many new things that you can invest in with an SDIRA that you may not normally do, there are some that are not allowed. Here are some examples of investments that are not allowed:
Collectibles – You cannot invest in antiques, artwork, and stamps.
Life insurance
S Corporations
Explore over 90 alternative assets you can invest in with a self-directed IRA (and learn more about the ones you can’t) here!
Understanding a Self-Directed IRA (SDIRA)
Here are some essential things to think about when it comes to self-directed IRAs:
Due diligence
Due diligence means doing careful research and checking everything thoroughly before making an important decision. Since you are responsible for all the investment choices, you’ll want to do your homework beforehand to make sure you know all the facts and risks involved.
Legalities and regulations
You should be aware of the legalities and regulations surrounding SDIRAs. As mentioned before, certain transactions, such as investing in life insurance or collectibles, may be prohibited. There are also separate IRS deadlines for some types of assets.
In addition to the prohibited transactions listed above, it’s also essential to remember that the IRS has strict regulations concerning who can materially benefit from or transact with the SDIRA – known as “disqualified persons.” These are people like your spouse and children. For example, if you purchase a rental property, you (and your family) cannot use it for a family vacation.
Fees and expenses
SDIRAs have fees for recordkeeping and making transactions. Knowing the costs can impact how much money you make from your investments and may change your decisions.
Contribution limits and rules
Like IRAs from a bank or brokerage, SDIRAs have annual contribution limits. Be mindful of the limitations and make sure that your contributions follow the rules set by the IRS.
Withdrawal rules and penalties
You should be aware of the self-directed IRA withdrawal rules and penalties. Early withdrawals made before the age of 59.5 years may be subject to a 10% penalty and additional taxes. Additionally, if the funds are tax-deferred, you must also pay income taxes on the distributed amount.
Pros and cons of a self-directed IRA
Advantages of self-directed IRA:
Diversification – You can invest in real estate, private equity, precious metals, and other alternative assets.
Tax benefits – SDIRAs have the same tax advantages as regular IRAs. You can enjoy tax benefits based on the type of IRA (traditional or Roth) you choose.
Potential for higher returns – With a self-directed IRA, you can go after investments that might earn you more money than the usual choices. This could mean your retirement savings grow faster in the long run.
Disadvantages of self-directed IRA:
Can be more complex – Managing an SDIRA can be a more complicated process due to having more responsibility in choosing suitable investments and having to do more research. There is also less transparency surrounding alternative assets than those traded on the public market.
Higher risk – There may be higher risks, such as illiquidity, lack of regulatory oversight, and market volatility. There are also more scams in the SDIRA world because the investments differ and don’t have as much oversight.
Fees and expenses – SDIRAs often have higher fees, such as custodial, transaction, and recordkeeping fees.
How to Open a Self-Directed IRA
Setting up a self-directed IRA requires a bit more work than opening one through a bank or brokerage.
Here are some steps:
Find an SDIRA provider. Often referred to as an administrator or custodian, this entity is a financial institution that handles alternative investments and fulfills IRS-mandated recordkeeping requirements associated with your self-directed IRA.
Ensure they can hold the asset you want to invest in. For example, not all SDIRA custodians allow single-member LLCs or cryptocurrencies.
Choose between a traditional or Roth SDIRA
Create your account and pay your account establishment fee
Fund your SDIRA via a transfer, rollover, or contribution
Note: Having an experienced financial advisor can be super helpful in handling your SDIRA, as they can give you expert advice on what you should do.
The Entrust Group Review
Want to open a self-directed IRA? A popular administrator option is The Entrust Group, which has been in the business for over 40 years, with over 45,000 investors and $4 billion in assets under custody.
Opening an account with The Entrust Group makes the process easy, and you can choose your funding type, including rolling over an old 401(k), transferring an existing IRA, or making a new contribution.
Keep in mind that there are increased fees associated with an SDIRA. But, The Entrust Group is open about their fee structure, which you can find on their website here. Some of their fees include:
Account establishment fee – This one-time fee covers the cost of opening an account.
Annual recordkeeping fee – This is the fee that covers IRS reporting, recordkeeping, and admin.
Purchase and sale of asset fees – This one-time fee covers the paperwork required to execute the purchase or sale of an asset.
Transaction fees – These fees are charged for transactions.
The Entrust Group has a quick calculator that you can play around with to see what your fees are. I spent some time with it to better understand the different fees; for example, if I have one asset valued at $45,000, my one-time setup fee would be around $50, and my recordkeeping fee would be $199. If I have two assets with a total value of $100,000, then my set up fee is $50, plus the recordkeeping fees of $374. However, any undirected cash in your account isn’t subject to recordkeeping fees; so you won’t be subject to these when you’re between investments.
In summary, The Entrust Group is a reputable and experienced provider of self-directed IRA services, giving you the power to invest in many different alternative assets. If you want to diversify your investment portfolio simply, The Entrust Group may be a choice for your self-directed IRA.
Download their free Self-Directed IRAs: The Basics Guide to learn how you can take control of your financial future with an SDIRA with The Entrust Group.
Frequently Asked Questions About Self-Directed IRAs
Below are answers to common questions about self-directed IRAs.
What are the risks of a self-directed IRA?
Some risks of self-directed IRAs include the potential for fraud, and higher fees, and it may be a little more challenging to manage your alternative investments because there are more rules. And you are entirely in control of your account – so it requires more of a time investment. Also, self-directed IRAs require a custodian, and fees for these services can be higher than with a regular IRA.
Do you pay taxes on a self-directed IRA?
Yes, you do pay taxes on a self-directed IRA, but as with a regular IRA, the matter of “when” depends on what type of account you have. With a self-directed traditional IRA, your contributions may be tax-deferred, and you will pay taxes on withdrawals during retirement. Comparatively, a self-directed Roth IRA holder contributes after-tax dollars and can make tax-free qualified withdrawals.
Is a self-directed IRA better than a 401k?
It depends on your financial goals and investment preferences. A self-directed IRA can give you more control over your investments, while a 401(k) has limited investment options but may include employer-matching contributions.
How do self-directed IRA fees work?
Self-directed IRAs typically have higher fees than traditional IRAs due to the increased administrative costs associated with alternative assets. Some of the fees you may come across with SDIRAs include set-up fees, annual maintenance fees, and transaction fees.
Can I invest in real estate with a Self-Directed Roth IRA?
Yes, you can invest in real estate with a Self-Directed Roth IRA. You can also learn more about this at Self Directed IRA for Real Estate: Benefits, Risks, & Next Steps.
Are Self-Directed IRAs a Good Idea? – Summary
I hope you enjoyed this self-directed IRA guide.
While it is great that you have more options in what you can invest in, SDIRAs do require a little more work on your end.
But, if you’re looking to invest in different kinds of assets than just stocks and bonds, then SDIRAs are worth considering.
Are you interested in opening a self-directed IRA? Visit The Entrust Group to schedule a consultation with one of their experienced IRA experts.
After last Friday’s jobs report, there wasn’t anything on the event calendar that demanded obvious attention until next week’s CPI. The Treasury auction cycle was the thing that traders/analysts talked about because that’s the only thing that was remotely worth talking about. To be fair, there was obviously a pop after the 30yr auction, but it was a stunningly bad auction. Moreover, it was traded back out by the next morning (today). Bonds drifted sideways to slightly weaker on Friday for no particular reason and we’re not interested in trying to fabricate any reasons in light of the entire week’s trading range remaining inside a single day’s trading range from last Friday.
Consumer Sentiment
60.4 vs 63.7 f’cast, 63.8 prev
1yr inflation expectations
4.4 vs 4.2 prev
5yr inflation expectations
3.2 vs 3.0 prev
10:52 AM
Slightly stronger overnight but giving up some gains early. 10yr still down 3.4bps at 4.598. MBS up 2 ticks (0.06).
12:01 PM
Weaker into the PM hours. MBS down 1 tick (0.03) on the day and a quarter point from highs. 10yr down 2 bps at 4.612
01:22 PM
New lows for MBS, but distorted by illiquidity. 6.0 coupons showing more than a quarter point of losses, but probably less than an eighth after factoring out the wide bid/ask. 10yr up to unchanged levels on the day at 4.63.
04:16 PM
MBS bounced back from illiquidity, heading out with 6.0s down only 2 ticks (.06). 10yr yields have been boring by comparison: down 3.5bps currently at 4.736.
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When traders/analysts look back to see what was on the calendar when 10yr Treasury yields broke below the 4.8% level after 2 weeks of choppy, sideways consolidation, they’ll assume the Fed was the inspiration for the big rally. That will only be partially accurate. In fact, the Fed didn’t really do or say anything that warranted a big rally. Instead, it was this morning’s slew of economic data and the Treasury refunding announcement that did most of the heavy lifting.
Employment Cost Index (ECI)
1.1 vs 1.0 f’cast, 1.0 prev
FHA Home Prices
0.6 vs 0.5 f’cast (m/m)
Case Shiller Home Prices
2.2 vs 1.6 f’cast (y/y)
Chicago PMI
44 vs 45 f’cast, 44.1 prev
09:09 AM
Flat to slightly stronger overnight. Additional moderate gains after Treasury announcement. 10yr down 5.3bps at 4.873. MBS up 5 ticks (.16).
12:31 PM
More gains after 10am data, but leveling off now. 10yr down 11.4bps at 4.812. MBS up half a point.
04:09 PM
Additional gains after Fed and Powell press conference. Holding up well into the close. 10yr down 16.5bps at 4.761. MBS up more than 3/4ths after adjusting for illiquidity.
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