MBS OPEN: Unchanged After ADP, More Data Coming...
By:
Matthew Graham
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So far this AM
- ADP employment down 298k, more than expected
- Still, we're shocked ADP is even line 1 news
- Mortgage Banker's Association on government's future role in secondary mortgage market: "The centerpiece of federal support for the secondary mortgage market should be a new line of mortgage backed securities." More on this (a lot more) coming later today.
Recap of yesterday
- Started down, ended up on stock market selling
- stock selling driven by losses in bank shares
- paradoxically, data was good
- key levels broken (in a good way) in both tsy's and MBS
The Day Ahead
- productivity and costs at 530
- FOMC MINUTES at 2pm
In the time it takes to type:
- Productivity and costs out mostly as expected
- After slight indecision, fixed income looks to stabilize in "just barely positive" opening levels