I am going to continue to post, when appropriate, updates from the service I use called MBS Quoteline, that updates me on the bond market. Remember that in general, inflationary news is bad for the bond market and interest rates, and deflationary or recessionary news is positive for the bond market and interest rates. The news for today is:
“MBS are down -6/32 (FNMA 30-yr 3.0 at 104.11), around 2/32 lower than yesterday at this time.
Stronger than expected economic data in China hurt MBS this morning. As expected, the ECB made no change in rates. Comments from the ECB President contained little indication of future rate cuts, which was another negative for MBS this morning. In the US, weekly Jobless Claims fell to 371K, above the consensus of 365K. The Dow is up 50 points. No more economic data will be released today. The results from the 30-yr Treasury auction will come out around 1:00 et.
The CFPB just released the much anticipated Qualified Mortgage Rule. Details of the Rule will be widely discussed in the days and weeks to come. It is nice to note that the effective date for the Rule is not until January 2014.”