Markets calm to start this week

Published Date 10/24/2022

MBS prices higher after one of those crazy hours Friday from 4 pm ET to 5 pm. Stock indexes traded better in pre-open futures markets. There are no economic releases today.

One week from today the FOMC meeting gets underway, this week likely to be choppy with not much change from present rates and prices. No Fed chatter this week. Economic data isn’t much until Friday when the next inflation releases hits; personal consumption expenditures (PCE).

There are no data points today; no market-moving news in the rate markets. Waiting for the FOMC next Tuesday with only one key report this week coming on Friday when the PCE inflation report is released.

The Fed will increase the FF rate by 75 bps next Tuesday, the markets now focusing on whether the Fed will slow the 75 bp bumps, next week will be the 4th. Increasing ideas about the Fed slowing were supported last week from the last Fed official to comment until after the FOMC meeting. “We will have a very thoughtful discussion about the pace of tightening at our next meeting,” Fed governor Christopher Waller said in a speech.

At 9:30 am the DJIA opened +178, NASDAQ +4, S&P +14. 10 yr. at 9:30 am 4.24% +1 bp. FNMA 5.5 30 yr. coupon at 9:30 am -8 bps from Friday’s close and +61 bps from 9:30 am Friday.

Source: TBWS

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