| Last | Change | Percent | |
| S&P Futures | 1880.2 | 6.8 | 0.36% |
| Eurostoxx Index | 3200.2 | 16.1 | 0.51% |
| Oil (WTI) | 100.4 | 0.4 | 0.44% |
| LIBOR | 0.225 | 0.001 | 0.45% |
| US Dollar Index (DXY) | 79.8 | -0.103 | -0.13% |
| 10 Year Govt Bond Yield | 2.64% | 0.02% | |
| Current Coupon Ginnie Mae TBA | 106 | -0.1 | |
| Current Coupon Fannie Mae TBA | 104.8 | -0.1 | |
| BankRate 30 Year Fixed Rate Mortgage | 4.22 |
Markets are higher this morning on strength in commodity prices. Bonds and MBS are down small.
No economic data this morning - we should get delinquencies and foreclosures from the MBA sometime this week. Tomorrow will probably have the most important data for the bond market with retail sales. The Street is expecting a .4% increase in the headline number. We get some inflation data with the CPI and the PPI this week, but inflation isn't going to move the markets. Finally on Friday we get housing starts and building permits. I feel like Linus in the pumpkin patch waiting for my 1.5 million housing starts print, which has been normalcy over the past 50 years.
Of course the fly in the ointment for housing starts are the Millennial generation, which is depressing household formation and labor mobility. Workers are risk averse and unwilling to move given that companies no longer are willing to pay relocation costs, or even to fly applicants out for an interview. You end up in a situation where you have labor shortages and labor gluts. Of course this dynamic will change once the economy starts moving again, but this is yet another headwind.
Bill Gross cut his holdings of MBS in his Total Return Fund from 23% to 19%. He upped exposure to U.S. corporates and emerging markets debt. Duration was reduced to 4.73 years. This looks like a modest bet on economic strengthening. Separately, Atlanta Fed Head Dennis Lockhart says the economy should hit 3% growth in Q2.
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