Is data driving the markets? Economic reports? Stocks are up and bonds have ticked down slightly. So does this mean that it was the better than expected durable goods print filling the causality role? Not even remotely. We talked quite a bit yesterday about market movements being disconnected from fundamentals. Indeed that's the case again this AM with most eyes being turned toward the auction at 1pm. Rather than hit you up with another lengthy morning post, and considering that a decent portion of you didn't read yesterday's morning post, and considering it was--how you say in America?-- Frickin' Rad, I implore you, strongly suggest to you, nay, command you to go read it. I know it's long, but do it! (incidentally, I'm entitled to the laudation as AQ wrote it, not me).
Beyond that, I'll just give you a glance at current market and rest of the day so that you can focus your reading time on the important stuff mentioned above.
- Mortgage Applications Rise
- New Home Sales Rise
- Better than forecast Durable Goods has no discernable effect on MBS as bonds and stock markets are content to whipsaw around unchanged.
- Auction Coming At 1 PM. Tune in then for initial market reactions and any potential reprice risk.
MBS Market Alerts
