New Curveball as LLPA Just Got Delayed Until Dec 1

There are two huddle videos today.  The newest and most relevant one appears below as normal.  It references the old one which you can find here if you like.  Why the change?  Between the time of recording and publishing the first one, news broke regarding the delay of the 50bp adverse market fee.  While this DOESN'T mean rate sheets will improve by 50bps, it does mean that SOME lenders will ease up on their defensively positioned margins, thus netting clients a bit of a relative advantage (assuming bond markets play ball).

Econ Data / Events

  • 20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th)

  • New Home Sales 901k vs 785k f'cast, 791k prev

  • Consumer Confidence 84.8 vs 93.0 f'cast, 91.7 prev

Market Movement Recap
08:23 AM

"risk on" move overnight with Astra Zeneca vaccine headlines and US/China trade deal phone call.  Treasury yields up 4.72bps to .7014.  2.0 UMBS down over an eighth.  Stocks adding roughly half a percent in S&P futures.

01:32 PM

Decent bounce back around 11am, which was sort of a mirror of yesterday at 11am.  That happens to be the end of the European bond market trading day and EU bonds have been contributing to US bond market momentum more than normal this week.  MBS are still down an eighth on the day.