Daily Capital Market Update | 06/08/2021


Senior Vice President of Capital Markets

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
2 Year .155%
10 Year 1.553%
UMBS 30 2% 101-3+
UMBS 30 2.5% 103-19
UMBS 15 2% 103-10

 

Economic Calendar

Date Time Event Period Survey Actual Prior Revised
6/7/2021 15:00 Consumer Credit Apr $20.000b $18.612b $25.841b $18.584b
6/8/2021 6:00 NFIB Small Business Optimism May 101 99.8
6/8/2021 8:30 Revisions: Trade Balance          
6/8/2021 8:30 Trade Balance Apr -$68.7b -$74.4b
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 MoM May 0.40% 0.80%
6/10/2021 8:30 CPI Ex Food and Energy MoM May 0.50% 0.90%
6/10/2021 8:30 CPI YoY May 4.70% 4.20%
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 Continuing Claims 29-May 3650k 3771k
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%

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