Bond Market Update

Market Update

Tuesday, November 12, 2019

What'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%