Market commentary

No economic data today and both the equity and bond markets are trading relatively flat versus the close on Thursday. The bond market specifically will be focused on next week’s U.S. debt auctions and the Fed meeting.

The U.S. Treasury will auction $40 billion of 2 year notes on Tuesday, $38 billion of 5 year notes on Wednesday and $30 billion of 7 year notes Thursday. In addition to this supply, the Federal Reserve will be meeting to discuss interest rate policy in a two day meeting, which begins Tuesday and will end Wednesday with the Fed announcement regarding interest rates and prognostication for the economy.

Have a great Father’s Day weekend!

Market commentary

More positive news on inflation this morning as the Consumer Price Index for May falling 0.2%, while excluding food and energy CPI rose 0.1%. Additional economic data came from the Federal Reserve Bank of Philadelphia which reported its economic index for its region fell to 8, from a reading of 21.4 the previous month. While a positive number reflects expansion, the drop in the index reflects the expansion is slowing significantly.

Bond prices rose sharply on the tame inflation and weak economic data, with mortgage bonds improving .25% to .375% in price.

Market commentary

Positive news for bonds this morning as inflation remains a non-event based on the Producer Price Index for May falling 0.3%, while excluding food and energy PPI rose 0.2%. Additional positive news for bonds was a report from the Commerce Department that Housing Starts fell 10% and building permits declined to a one year low. This data reflects an overhang of excess housing, including foreclosures and “shadow” inventory, and the expiration of the homebuyer tax credit.

U.S. stock markets are lower on the day given the downbeat economic data on housing while treasury and mortgage bond prices are improved. Mortgage bonds are approximately .125% better from Tuesday’s close. Remember, bonds sold off Tuesday afternoon, so the improvement is from those levels.

Market commentary

European and U.S. stock markets moved higher this morning on successful debt sales by Ireland, Spain and Belgium. Although investors required higher than “normal” yields to absorb the bonds, the markets viewed the auctions as successful.

U.S. Treasuries are flat from Monday’s close while mortgage bonds are improved by approximately .125%.

Market commentary

What a difference a weekend makes. After a strong rally on Friday, bonds are giving back everything as global stock markets rebound, based on European industrial data. This data was stronger than expected; easing concerns the sovereign debt crisis in Europe would lead a global economic slowdown.

The economic calendar this week is full including the Producer Price Index, Housing Starts, Industrial Production, and the Consumer Price Index.

Market commentary

The U.S. stock market posted strong gains on Thursday, while the bond market was hit with heavy selling. Mortgages lost over .625% in price during the day, forcing lenders to post mid-day price changes for the worse.

This morning Thomson Reuters/University of Michigan reported its consumer confidence survey had risen to 75.5, the highest reading since January 2008, however, this optimism was not present in the Retail Sales data, when the Commerce Department reported retail sales fell 1.2% in May.

U.S. stock markets are trading slightly lower on this data, while treasury and mortgage bonds are gaining back some of Thursday’s losses.

Enjoy your weekend!

Market commentary

Global stock markets, inclusive of the U.S. are rallying this morning on economic reports from China, Australia, and Japan reflected accelerating growth. The sole negative report came from the U.S. as weekly jobless claims remain higher than expected; indicating the job creation in the U.S. is anemic.

The markets have discounted the jobless claims data as investor clamor into stocks, which has driven the DOW higher by 200+ points. As one should expect, bond prices are declining moving interest rates higher. The yield on the 10 year note now stands at 3.26%, with the $13 billion of 30 year treasury bonds still to come.

Mortgage pricing is .15% to .375% worse from the close on Wednesday, but remain in the mid 4% range.