At A Glance:
- 6.0's up 3 ticks to 101-00 (that's a mighty 10 ticks from "going out" levels.
- tighter to UST's again, silencing the naysayers..
- As expected, Feds open discount window to Fannie and Freddie over the weekend
- Freddie Auction underway now until 9:45 Eastern.
- No other scheduled data.
- Stock Futures are up solidly (over 100 pts) thanks to Sunday's Fannie/Freddie News
- QUICK
LOCK GUIDE: FLOAT.
- VIGILANCE: HIGH.
abbreviations guide (ongoing list):
- MBS -
- Mortgage Backed Security
- MDPC-
- Mid Day Price Change (plus means for the better, minus for the worse)
- DOW or DJIA -
- Dow Jones Industrial Average
- Ticks-
- 1/32nds of bond pricing. 8 ticks=8/32nds=.25 in cost (YSP or discount)
- DoD, YoY, MoM-
- Day over day, year over year, month over month, etc..
- O/N-
- Overnight
- Coupon-
- The "interest rate' of the MBS
- 6.0's, 5.5's
- always means FNMA 30yr Fixed MBS with a coupon of that number. 6.0's = 6.0% coupon rate MBS
- PCE-
- Personal Consumption Expenditures
- UST-
- United States Treasury Bonds. 5UST = 5 year, 10UST = 10 year, etc..
- NAPM (PMI)
- National association of purchasing management (Purchasing Manager's Index)
- ISM (MFG)
- Institute for Supply Management (mfg: manufacturing)
- Wide/Gap/Gappy
- refers to the wideness or gap between treasury yields and MBS yields.
- "Going Out"
- 4:45PM EST. Official Close is 3pm EST
- FI
- "fixed income." For our purposes, will simply refer to treasuries and MBS
- NFP
- Non-Farm Payrolls. Key part of employment report. Most meaningful gauge of labor market
- ADP
- ADP private payrolls, some feel a precursor to NFP, but historically quasi-accurate at best.
- GSE
- Government Sponsored Enterprise. Refers to Fannie Mae and Freddie Mac