Bond Market Update
Market Update
Tuesday, November 12, 2019What's going on and why does it matter?
Mortgage bonds are continuing to trade in negative territory below their 100-day moving average as the market awaits clear direction on US-China trade negotiations. Concerns have surfaced that a phase one deal may be the only deal, and even then it's unclear what exactly that might look like. President Trump is scheduled to discuss trade policy at the Economic Club of New York this evening after the market closes. Investors are likely to hang on every word, and market sentiment this week could be impacted by today's speech. Beyond that, a few Fed policymakers are scheduled to give speeches this week, including Fed Chair Powell's scheduled testimony before Congress on Wednesday and Thursday. The economic calendar is light today, but it picks up later this week.
What should you do about it?
Lock your rate to be safe.
Economic Calendar
Economic reports that may impact mortgage rates this week:
| Date | Report | Period | Prior | Est. | Actual |
|---|---|---|---|---|---|
| Wed 13 Nov | Core CPI | Oct | 0.1% | 0.2% | |
| Wed 13 Nov | CPI | Oct | 0.0% | 0.3% | |
| Thu 14 Nov | Initial Jobless Claims | Week of Nov 4 | 211k | 215k | |
| Thu 14 Nov | PPI final demand | Oct | -0.3% | 0.3% | |
| Fri 15 Nov | NY Fed Mfg Index | Nov | 4.00 | 5.00 | |
| Fri 15 Nov | Retail Sales | Oct | -0.3% | 0.2% | |
| Fri 15 Nov | Industrial Production | Oct | -0.4% | -0.4% | |
| Fri 15 Nov | Capacity Utilization | Oct | 77.5% | 77.1% | |
| Fri 15 Nov | Business Inventories | Sep | 0.0% | 0.1% |