Bond Market Update
Bond Market Update
Market Update
Wednesday, July 1, 2020What's going on and why does it matter?
Mortgage bonds are continuing to hover near the upper end of their recent range as the first trading day of Q3 gets underway. New coronavirus cases in the US spiked more than 47,000 yesterday, which is a new one-day high, and White House health advisor Dr. Fauci warned that daily cases could exceed 100,000 at the current pace. Meanwhile, this morning's ADP private employment numbers showed job gains of 2.369 million last month although the market was expecting to see 3 million new jobs. The market's attention will now turn to the closely-watched official non-farm payrolls report which is scheduled for release tomorrow. The Fed is scheduled to purchase up to $4.665 billion of mortgage bonds today.
What should you do about it?
Watch and see if mortgage bonds can remain above their 10-day moving average, but be prepared to lock your rate if mortgage bonds fall below that level.
Economic Calendar
Economic reports that may impact mortgage rates this week:| Date | Report | Period | Prior | Est. | Actual |
|---|---|---|---|---|---|
| Mon 29 Jun | Pending Home Sales | May | -21.8% | 18.9% | 44.3% |
| Tue 30 Jun | Chicago PMI | Jun | 32.3 | 45.0 | 36.6 |
| Tue 30 Jun | Consumer Confidence | Jun | 86.6 | 91.7 | 98.1 |
| Wed 1 Jul | ADP National Employment | Jun | -2.760M | 3.000M | 2.369M |
| Wed 1 Jul | Construction Spending | May | -2.9% | 1.0% | -2.1% |
| Wed 1 Jul | ISM Mfg PMI | Jun | 43.1 | 49.4 | 52.6 |
| Thu 2 Jul | Non-farm Payrolls | Jun | 2.509M | 3.000M | |
| Thu 2 Jul | Unemployment Rate | Jun | 13.3% | 12.3% | |
| Thu 2 Jul | Average Earnings | Jun | -1.0% | -0.7% | |
| Thu 2 Jul | Initial Jobless Claims | Week of Jun 22 | 1.480M | 1.355M | |
| Thu 2 Jul | Factory Orders | May | -13.0% | 8.6% |