‚Äč Bond Market Update

Bond Market Update

Bond Market Update

Market Update

Friday, June 11, 2021

What's going on and why does it matter?
Mortgage bonds have been surprisingly resilient in the face of yesterday's stronger than expected consumer inflation report. The economic calendar is light today, with the University of Michigan Consumer Sentiment report scheduled for release later this morning. Meanwhile, the market may continue to adjust its inflation expectations as we've now had two months in a row of higher than expected inflation numbers. The Fed is scheduled to purchase up to $4.6 billion of mortgage bonds today.

What should you do about it?
Watch and see if mortgage bonds can remain in positive territory above their moving averages, but be prepared to lock your rate if mortgage bonds fall below those levels.

Economic Calendar

Economic reports that may impact mortgage rates this week:

Date Report Period Prior Est. Actual
Tue 15 Jun New York Fed Mfg. Index Jun 24.30 22.00  
Tue 15 Jun PPI final demand May 0.6% 0.6%  
Tue 15 Jun Retail Sales May 0.0% -0.8%  
Tue 15 Jun Industrial Production May 0.7% 0.6%  
Tue 15 Jun Capacity Utilization May 74.9% 75.0%  
Tue 15 Jun Business Inventories Apr 0.3% -0.1%  
Wed 16 Jun Building Permits May 1.733M 1.740M  
Wed 16 Jun Housing Starts May 1.569M 1.630M  
Wed 16 Jun Fed Funds Target Rate - 0-0.25% 0-0.25%  
Thu 17 Jun Initial Jobless Claims Week ending June 12 376k 370k  
Thu 17 Jun Philly Fed Business Index Jun 31.5 31.0