| Last | Change | Percent | |
| S&P Futures | 1863.2 | 3.1 | 0.17% |
| Eurostoxx Index | 3161.8 | 14.4 | 0.46% |
| Oil (WTI) | 101.1 | 0.5 | 0.47% |
| LIBOR | 0.225 | -0.002 | -0.77% |
| US Dollar Index (DXY) | 79.58 | -0.174 | -0.22% |
| 10 Year Govt Bond Yield | 2.67% | 0.01% | |
| Current Coupon Ginnie Mae TBA | 105.6 | 0.0 | |
| Current Coupon Fannie Mae TBA | 104.6 | 0.0 | |
| BankRate 30 Year Fixed Rate Mortgage | 4.25 |
Markets are up small this morning after Pfizer released a $100 billion bear hug for AstraZeneca Plc. Bonds and MBS are flat.
Big week coming up. The action begins Wednesday, with the FOMC decision and the advance estimate of Q1 GDP. On Thursday, we have a couple of big reports with the ISM Manufacturing report as well as personal income / consumption. Finally, on Friday we get the jobs report. So, there is a lot of stuff this week that could move bonds around. Float at your own risk.
The Street estimate for Q1 GDP is +1.2%, a significant slow down from the +2.6% pace for the fourth quarter. Clearly the Street is baking in some caution given the lousy weather in January and February. Housing continues to punch below its weight, so that is another issue.
The FOMC meeting will not have a press conference or any revisions to the economic forecast, so it should be a non-event. Expect to see another $10 billion reduction in asset purchases.
Pending Home Sales rose 3.2% month over month but fell 7.4% on a year-over-year basis. The jump was mainly a catch-up after a rough start to the year. The NAR is expecting existing home sales to hit 4.9 million in 2014, less than the 5.1 million pace in 2013. Given the inventory shortage, they expect median prices to increase 6% - 7% this year.
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