What Will it Take For Bonds to Recover?
What Will it Take For Bonds to Recover?
Another day, another sell-off without any satisfying explanations. To be fair, you could say bonds just traded the curve today with anything 3yrs or shorter rallying at the expense of the longer end of the curve. But for the mortgage market, <3yrs is too short-term to matter. Data and headlines did not line up well at all with the weakness, so take your pick from the general themes we've added to the daily lock/float considerations. At some point, yields will have moved high enough to motivate investors to buy bonds for investment purpose (as opposed to tactical or compulsory trading purposes). Until then, the trend is not your friend.
What Will it Take For a Recovery
| Time | Event | Period | Actual | Forecast | Prior |
|---|---|---|---|---|---|
| Tuesday, Oct 06 | |||||
| 8:15AM | ADP Employment Change Weekly | 23.75K | 20K | ||
| 8:30AM | Aug Trade Gap (bl) | Aug | -105.60B | $-102B | $-88.6B |
| 10:00AM | Oct IBD economic optimism | Oct | 44.5 | 45.6 | |
| 12:00PM | EIA Short-Term Energy Outlook | ||||
| 1:00PM | 3-Yr Note Auction (bl) | 58 | |||
| Wednesday, Oct 07 | |||||
| 7:00AM | Oct/02 Mortgage Market Index | Oct/02 | 213.6 | ||
| 7:00AM | Oct/02 MBA Refi Index | Oct/02 | 557.8 | ||
| 7:00AM | Oct/02 MBA Purchase Index | Oct/02 | 148.2 | ||
| 10:30AM | Oct/02 Crude Oil Inventory (ml) | Oct/02 | 0.922M | ||
| 11:00AM | Sep Consumer Inflation Expectations | Sep | 3.6% | ||
| 1:00PM | 10-yr Note Auction (bl) | 39 | |||
| 2:00PM | FOMC Minutes | ||||
| 3:00PM | Aug Consumer credit (bl) | Aug | $15B | $18.06B | |