| Last | Change | Percent | |
| S&P Futures | 1824.9 | -21.8 | -1.18% |
| Eurostoxx Index | 2820.9 | -71.7 | -2.48% |
| Oil (WTI) | 80.66 | -1.1 | -1.37% |
| LIBOR | 0.229 | -0.002 | -0.65% |
| US Dollar Index (DXY) | 85.15 | 0.003 | 0.00% |
| 10 Year Govt Bond Yield | 2.05% | -0.08% | |
| Current Coupon Ginnie Mae TBA | 106.9 | 0.1 | |
| Current Coupon Fannie Mae TBA | 106.4 | 0.2 | |
| BankRate 30 Year Fixed Rate Mortgage | 3.93 |
Markets are still heavy this morning as Europe sells off. Bonds continue to rally, with the 10 year yielding 2.07%.
Is Ebola driving the correction in the stock market? FWIW, I don't think so - I think it is European markets, which are collapsing. The Eurostoxx 50 index is down 13.5% over the past month. Note that Bullard is saying the same thing right now, and also suggesting that the Fed consider delaying the end of QE. Which begs the question - why? Rates are falling all on their own - does the Fed really need to keep purchasing bonds to drive the 10 year below 2%? Regardless, these dovish comments should be market positive, though how it affects the 10 year is an open question.
Was yesterday's pre-market print of 1.95% on the 10-year the capitulation point? Could be, but watch credit spreads and the PIIGS. If spreads continue to widen, all bets are off.
Is Ebola driving the correction in the stock market? FWIW, I don't think so - I think it is European markets, which are collapsing. The Eurostoxx 50 index is down 13.5% over the past month. Note that Bullard is saying the same thing right now, and also suggesting that the Fed consider delaying the end of QE. Which begs the question - why? Rates are falling all on their own - does the Fed really need to keep purchasing bonds to drive the 10 year below 2%? Regardless, these dovish comments should be market positive, though how it affects the 10 year is an open question.
Was yesterday's pre-market print of 1.95% on the 10-year the capitulation point? Could be, but watch credit spreads and the PIIGS. If spreads continue to widen, all bets are off.
Initial Jobless Claims fell to the lowest since 2000, with 264k people filing for first time unemployment. Continuing Claims rose 1,000.
Industrial Production rebounded in September after a dismal August, increasing by 1%. Capacity Utilization rose to 79.3%. Philly Fed fell to 20.7 from 22.5.
The NAHB Housing Market Index fell from 59 to 54. While builder sentiment dipped in October, they are still positive on the housing market. Given we are now in the seasonally slow period for the builders, I don't know how much to read into this. Of course the big drop in rates could change that.
The latest Fannie Mae Lender Sentiment Survey discusses compliance costs and how much it costs. Most lenders (72%) reported that recent regulations have had a "significant" effect on their business. Mid-sized lenders reported a 50% increase in compliance spending. Note that most lenders are worried more about compliance risk than volume decrease risk.
Not housing related, but Lockheed Martin thinks we could have nuclear fusion within a decade. This is almost limitless power, without the radioactive waste that we get from nuclear fission, which is how we power our reactors today. It would also make a huge dent in CO2 emissions if it could be done on a large scale. This is a game changer on so many levels - strategic and economic.
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