The MBS market opened flat today, which is unusual. Stocks were down about 11 points. The Reserve Bank of Australia raised interest rates by 25 basis points overnight. Job openings were 9.6 million at the end of July, but hires decreased to 5.9 million. The quits rate decreased to 2.4%. ISM manufacturing came in at 46.4, and prices came in at 42.6. Fannie Mae’s second quarter earnings were released this morning, and they were $5.0 billion. GDP growth accelerated to 2.4% in the second quarter. The bond market lost ground today, but mortgage REIT Two Harbors reported earnings and said that the volatility has decreased. This means that mortgage rates should continue to decrease relative to movements in the 10 year bond. The month of July tallied 28 basis points in excess return to Treasuries, which makes it three months in a row that the index has pulled off this trick.
Here are the key points:
- MBS market opened flat, which is unusual
- Stocks down about 11 points
- RBA raised interest rates by 25 basis points overnight
- Job openings were 9.6 million at the end of July, but hires decreased to 5.9 million
- The quits rate decreased to 2.4%
- ISM manufacturing came in at 46.4, and prices came in at 42.6
- Fannie Mae’s second quarter earnings were released this morning, and they were $5.0 billion
- GDP growth accelerated to 2.4% in the second quarter
- The bond market lost ground today
- Mortgage REIT Two Harbors reported earnings and said that the volatility has decreased
- The month of July tallied 28 basis points in excess return to Treasuries