Learn from the Past
Mortgage backed securities (MBS) gained 7 basis points (BPS) from Friday’s close which caused fixed mortgage rates to move sideways for our abbreviated session.
There were no economic releases, Fed speeches, Treasury auctions or any real change in geo-political issues. As a result, MBS moved relatively sideways and remained below the 200 day moving average.
What’s on the Agenda for this Week?
The new year kicks off with a “yawner.” There are no real events going today that have the gravitas to move pricing. As result, look for MBS to continue to trade near the 200 day moving average until the first dose of real economic data.
There are no major domestic economic releases today.
The Democrats are set to take control of the House tomorrow. They say that they have a new measure (two actually) that they will pass to reopen the government. However, it doesn’t look like the Senate will even take up the bill. There is a meeting scheduled today but the White House has described it as a “briefing” and not an announcement for any new deal.
Across the Pond
China: Caixin Manufacturing PMI 49.7 vs. estimates of 50.1.
Eurozone: Markit Manufacturing PMI 51.4 vs. estimates of 51.4.