Daily Capital Market Update
On Monday in mortgages, UMBS 30yr 2’s and 2.5’s closed tighter (outperformed) to treasuries by +2.625/32nds and +1.50/32nd respectively. Mortgage origination flows were down 6% day over day, finishing the day at $5.72bln vs $6.06bln. At 5:00pm, UMBS 30yr 2% were down -.50/32nds, closing at 101-1+ and UMBS 15yr 1.5% were down -1/32nds, closing at 101-8. The 10yr ended the session down 4.375/32nds in price and up in yield to 1.569%.
U.S. equities closed mixed on Monday with the S&P 500 Index down -3.37 points, ending at 4,226.52, the DJIA lower by -126.15 points to 34,630.24, while the NASDAQ increased by 67.23 points, closing at 13,881.72. Equities in Asia and Europe closed mixed with the Nikkei 225 lower by -194.76, and the FTSE 100 higher by +8.18 points.
The Fed reinvestment operation reached maximum purchase amounts yesterday and is scheduled to purchase up to $3.23bln in 30yr UMBS and $1.97bln in 30yr Ginnies today. Economic news will be light today with NFIB Small Business Optimism (May) already released this morning, coming in at 101 vs an expected 99.6. JOLTS Job Openings and Trade balance will be reported later this morning.
Equity futures are bouncing around this morning amidst fears of possible cyberattacks at multiple websites. Most issues seem to have been resolved, and futures are mixed in front of the opening bell.
|Marks @ 7:26am|
|UMBS 30 2%||101-3+|
|UMBS 30 2.5%||103-19|
|UMBS 15 2%||103-10|
|6/8/2021||6:00||NFIB Small Business Optimism||May||101||—||99.8||—|
|6/8/2021||8:30||Revisions: Trade Balance|
|6/8/2021||10:00||JOLTS Job Openings||Apr||8200k||—||8123k||—|
|6/9/2021||7:00||MBA Mortgage Applications||4-Jun||—||—||-4.00%||—|
|6/9/2021||10:00||Wholesale Inventories MoM||Apr F||0.80%||—||0.80%||—|
|6/9/2021||10:00||Wholesale Trade Sales MoM||Apr||—||—||4.60%||—|
|6/10/2021||8:30||Real Avg Weekly Earnings YoY||May||—||—||-1.40%||-1.70%|
|6/10/2021||8:30||CPI Ex Food and Energy MoM||May||0.50%||—||0.90%||—|
|6/10/2021||8:30||CPI Ex Food and Energy YoY||May||3.50%||—||3.00%||—|
|6/10/2021||8:30||CPI Index NSA||May||268.681||—||267.054||—|
|6/10/2021||8:30||Initial Jobless Claims||5-Jun||370k||—||385k||—|
|6/10/2021||8:30||CPI Core Index SA||May||275.058||—||273.7||—|
|6/10/2021||8:30||Real Avg Hourly Earning YoY||May||—||—||-3.70%||—|
|6/10/2021||9:45||Langer Consumer Comfort||6-Jun||—||—||55.6||—|
|6/10/2021||12:00||Household Change in Net Worth||1Q||—||—||$6925b||—|
|6/10/2021||14:00||Monthly Budget Statement||May||-$250.0b||—||-$225.6b||—|
|6/11/2021||9:00||Bloomberg June United States Economic Survey|
|6/11/2021||10:00||U. of Mich. Sentiment||Jun P||84.2||—||82.9||—|
|6/11/2021||10:00||U. of Mich. Current Conditions||Jun P||91.3||—||89.4||—|
|6/11/2021||10:00||U. of Mich. Expectations||Jun P||78.7||—||78.8||—|
|6/11/2021||10:00||U. of Mich. 1 Yr Inflation||Jun P||4.70%||—||4.60%||—|
|6/11/2021||10:00||U. of Mich. 5-10 Yr Inflation||Jun P||—||—||3.00%||—|