Extreme volatility returns

Published Date 10/19/2022

The 10 yr. note increased this morning, taking out the recent high. Stock indexes cooled a little yesterday, up but generally unchanged; this morning in futures trading the DJIA -176, NASDAQ -71, S&P -27.

Weekly MBA mortgage applications last week down 4.5%, purchase -3.7% and re-finances -6.8%.

At 9:30 am the DJIA opened +70 after trading -176 in pre-open futures markets. NASDAQ at 9:30 am -34, S&P -6. 10 yr. note at 9 am 4.11%, at 9:30 am -8 bps. FNMA 5.5 30 yr. coupon early this morning down 60 bps, at 9:30 am -47 bps. Volatility reigns.

Sept housing starts were expected at 1.475 mil, as released 1.439 mil and August starts revised lower, from 1.575 mil to 1.566 mil. U.S. homebuilding fell more than expected in September, led by a 13.1% decline in multi-unit projects permits expected at 1.550 mil from 1.517 mil, as released 1.564 mil. Increased permits are primarily multi-family. Housing starts dropped 8.1% to a seasonally adjusted annual rate of 1.439 million units last month.

At 1 pm Treasury will auction 20 yr. bonds. At 2 pm the Fed Beige Book.

Source: TBWS

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