MBS prices are up slightly (FNMA 3.50 +2/32) on a day without data. Not that data much matters lately. The drama slowly unfolding in the EU is really what seems to be driving prices right now. There is a note auction today, so we may see some reaction there. The US Treasury will sell $32B in 3yr notes today at 11am MT. Expect a strong auction to potentially spur a bond rally (rates down), while a poor showing may send rates higher. Otherwise, watch the headlines. There are some Fed Presidents and EU Finance Ministers speaking today. Add this to the other news coming from Europe, and we will likely see some more volatility. In fact, expect volatility to be rampant for the rest of the year potentially.
Tomorrow, Wednesday, 11/9 has Wholesale Inventories (est. 0.5%) and the second note auction of the week, a 10yr auction, set to go off at 11am MT. Wholesale Inventories is typically not a market moving report, so we can likely ignore it, but the auction may be noteworthy. Watch today’s auction to set expectations for the new two (Wed and Thurs).
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment