Published Date 8/3/2022
This morning the 10 yr. began 4 bps higher to 2.79%, MBS prices began the day 27 bps lower after yesterday’s 81 bp decline. US stock indexes in early pre-open trade were slightly better.
Mortgage applications last week in the US increased 1.2% in the last week of July, the first rise in five weeks, as both the refinance index (1.5%) and the purchase one (1%) went up.
At 9:30 am the DJIA opened +168, NASDAQ +80, S&P +21.10 yr. at 9:30 am 2.79% +4 bps. FNMA 4.5 30 yr. coupon at 9:30 am -17 bps and -81 bp from 9:30 am yesterday.
At 10 am July ISM services index was expected at 54.0 from 55.3, as reported the index 56.7.
US interest rates had become excessively overbought, the dam broke yesterday, now in a corrective pattern. The idea that the Fed would begin backing off rate increases has hit a wall recently as Fed officials stepped up with comments that the Fed still has more increases in its quiver.
3 month Libor rate at a 14-year high as traders brace for steady interest-rate hikes from the Federal Reserve, backing away from speculation the central bank will ease up as the economy shows signs of cooling. The rate rose for the fourth straight session, climbing roughly 2.5 basis points to 2.83%, the highest since November 2008.
Source: TBWS
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