1. Tue, Feb 12, 2013
The Day Ahead: Slightly More on Tap, Emphasis
on Slightly
chammond
BY MATTHEW GRAHAM Certified Mortgage
Planning Specialist
Mortgage Network, Inc
Precious little transpired on Monday with Asian accounts absent on
Holiday, weather-related absences in New York, and the general
clint-hammond.com
absence of market-moving data and events, scheduled or otherwise.
chammond@mortgagenetwork...
Volume was as low as it's been all year, and combined with low
volatility, made for an intensely soporific slide sideways. Phone: (803) 771-6933
Mobile: (803) 422-6797
Will Tuesday be any better? The level of market participation should Fax: (803) 771-6944
improve somewhat as Japan is back in action during Asian hours Facebook
though China remains out today and tomorrow for the Lunar New Year Twitter
holidays. This isn't to say that Chinese markets typically have a
Linked In
noticeable trickle-down effect to mortgage lenders rate sheets, but
volume and activity beget volume and activity. Not so much "begetting"
yesterday... Slightly more today...
There remains zero on tap in terms of domestic economic data (unless you're a deep thinker on labor
markets and want to count the Job Openings and Labor Turnover Survey, or JOLTS). Hard-pressed as
we are to find anything to talk about, we might mention the Federal Budget will be reported at 2pm, but
like JOLTS (and most everything else on the calendar), it would be a surprise to this move markets. The
best bets are the Fed speakers, especially new-for-2013 voter Esther George. Considering she was the
lone dissenter at the last meeting, markets expect hawkishness. If they get something else, it could
add to any bond market bullishness that happens to be in place.
The Treasury auction cycle begins with 3yr Notes at 1pm. 3's have tended to have no impact on
mortgage rates for about a year and a half, and while that may change some day, it's probably too soon.
Markets have already had a chance to buy 3's post-FOMC-Minutes drama (increased uncertainty about
eventual QE exit), and it was drama-free. Today's auction would have to be quite an outlier to produce a
different result, but whereas we'd completely ignore 3's before that, we'd only "mostly ignore" them
today.
MBS Live Econ Calendar:
Week Of Mon, Feb 11 2013 - Fri, Feb 15 2013
Time Event Period Unit Forecast Prior
Mon, Feb 11
-- No Significant Data Scheduled -- -- -- --
Tue, Feb 12
