Bond Market Update

Bond Market Update

Market Update

Friday, February 14, 2020

What's going on and why does it matter?
Mortgage bonds are drifting sideways between their 10-day and 30-day moving averages. While coronavirus jitters remain, financial markets seem hopeful that central banks will continue to be accommodating in their monetary policy. Today's economic calendar is quite full ahead of the long weekend. The retail sales report came out today in line with market expectations, and several other economic reports are scheduled for release later this morning. The market is closed on Monday for Presidents' Day.

What should you do about it?
Watch and see if mortgage bonds can stage a rebound, but be prepared to lock your rate quickly if mortgage bonds break below their 30-day moving average.

Economic Calendar

Economic reports that may impact mortgage rates this week:

Date Report Period Prior Est. Actual
Tue 11 Feb JOLTS Job Openings Dec 6.80M - 6.42M
Thu 13 Feb Core CPI Jan 0.1% 0.2% 0.2% 
Thu 13 Feb CPI Jan 0.2% 0.2% 0.1%
Thu 13 Feb Initial Jobless Claims Week of Feb 3 202k 210k 205k 
Fri 14 Feb Retail Sales Jan 0.3% 0.3% 0.3%
Fri 14 Feb Industrial Production Jan -0.3% -0.2% -0.3%
Fri 14 Feb Capacity Utilization Jan 77.0% 76.8% 76.8% 
Fri 14 Feb Business Inventories Dec -0.2% 0.1% 0.1% 
Fri 14 Feb U of Mich Consumer Sent. Feb 99.8 99.3 100.9