Congress passed a bill to raise the U.S. debt ceiling and end the partial government shutdown. While President Obama signed the short-term bill early Thursday morning, the deal will have to be revisited three months from now.
Friday was a quiet day for the Bond Market with no Fed speakers or economic news released. Overnight Treasuries snapped a three-day gain before the delayed Jobs Report is released tomorrow.
Yesterday, the market rallied yet again with the government finally reaching a short-term deal to end the shutdown. Short-term lending rates quickly improved, causing a sustained spike in the MBS market as well.
Mortgage rates can only drop so much before they begin to rise. Last week, fixed mortgage rates inched upward according to the Primary Mortgage Market Survey for the first time since the beginning of the month. That trend continued this week as rates again rose slightly.
President Obama signed a deal late last night to end the partial government shutdown. The market recovered all morning losses causing a re-price for the better.
Mortgage rates increased slightly yesterday as hesitant investors wait for news regarding the government shutdown. Trading volumes are 75% of the 30-day moving average showing the direct impact the political uncertainty has on the MBS market.
Another race, another Bring It Home finish for Ryan Newman, driver of the No. 39 Quicken Loans Chevrolet. After a wreck in the Hollywood Casino 400 at Kansas Motor Speedway two weeks ago resulted in a 35th-place finish, Ryan finished 8th at the Bank of America 500 last weekend.
Treasuries futures soared on headlines about a tentative deal; but the MBS market was closed. Investors are pining for economic data, but have to settle for the political soap opera.
Mortgage rates remained flat Friday. The market saw more volatility than the previous week, however any potential long term moves hinge on the government reopening for business. Investors are eager to see the employment report compiled prior to the shutdown, however it still has not been released. Thursday is the big news day with Jobless Claims and the Philadelphia Fed Survey still scheduled to be released.
It was a rough start in the morning yesterday but a rally in the afternoon helped turn us in the right direction. The turnaround was caused by a better than expected 30-year treasury auction as well as public comments by multiple Fed officials stating they did not expect any taper of the QE program before the end of the year.