Good morning and happy Monday! Hope you had a great Thanksgiving holiday. We had scheduled news today in the form of Pending Home Sales for Oct. It came in last month at -2.3% and the surveys were calling for +0.8% for today’s release. It surprised us at +7.5%! The bond market in early trading today is giving back much of Friday’s “flight to quality” gains after news of a new Omicron variant of Covid brought in buyers in all maturity buckets. The stock market, conversely, is higher after a beating Friday.
This morning the early talk out of S. Africa, the origin of this variant, is that this is relatively mild and poses little in the way of additional threats. Besides that, the medical people have been using the disgraced PCR test to diagnose this new strain. This test is being replaced at the end of the year for not distinguishing between Covid and the common flu. How is it suddenly able to accurately diagnose a brand-new strain? Short answer: it can’t.
In other news, the Fed was on the tape Friday expressing openness to speeding up the taper timeline if the conditions on the ground warrant it.
Bonds now are down in price, with the 10yr T-Note -19/32 to yield 1.54%. In MBS Fannie 30yr 2.50% are -6/32 to $102-11, which is a 1.99% yield and +75 to the 5.3yr treasury curve. That’s all from MBS today. Have a great day and call or email with your inquiries!
Cherry Picks
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Agency CMBS
Agency CMO – 3 Year
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Agency CMO – Long End
Jim Tait is a registered representative with and offers securities through Hanover Securities, Inc. (Hanover), Member FINRA & SIPC. Although this information has been obtained from sources we believe reliable, we do not guarantee its accuracy, and it may be incomplete or condensed. This is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Securities that may be shown are subject to availability and changes in price. Past performance is not indicative of future results. Changes in any assumptions may have a material effect on projected results.
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