Mortgage bonds prices opened near unchanged failing to erase the losses from yesterday afternoon amid mixed data this morning.
PPI fell 0.1%, weaker than the expected 0.1% increase. On the face this was bond friendly, unfortunately, the core, which excluded volatile food and energy, rose 0.2%, higher than the expected 0.1% increase. Housing starts rose 5.8%, stronger than the expected 4.6% increase, generally not bond friendly
Stocks futures point to a positive open later this morning.
Oil prices rose above $71/barrel in overnight trading. Falling energy prices generally help alleviate the fear of inflation and help rates improve and rising energy prices usually reignite inflation concerns.
Advertisements
Leave a Reply