Bond Market Update
Bond Market Update
Market Update
Thursday, July 2, 2020What's going on and why does it matter?
Mortgage bonds are retreating slightly and they appear to be heading toward their 10-day moving average. The US economy added a record number of jobs last month, a whopping 1.8 million more than expected, as it appears the economy is coming out of recession. However, the recovery is on shaky ground as coronavirus cases continue to spike, with the US reporting a daily record of over 50,000 new cases yesterday. Global stocks are in rally mode with investors hoping for a Covid-19 vaccine following encouraging news yesterday from Pfizer and BioNTech. The market closes early today and is closed tomorrow for the Independence Day holiday.
What should you do about it?
Watch and see if mortgage bonds can remain above their 10-day moving average, but be prepared to lock your rate if mortgage bonds fall below that level.
Economic Calendar
Economic reports that may impact mortgage rates this week:| Date | Report | Period | Prior | Est. | Actual |
|---|---|---|---|---|---|
| Mon 29 Jun | Pending Home Sales | May | -21.8% | 18.9% | 44.3% |
| Tue 30 Jun | Chicago PMI | Jun | 32.3 | 45.0 | 36.6 |
| Tue 30 Jun | Consumer Confidence | Jun | 86.6 | 91.7 | 98.1 |
| Wed 1 Jul | ADP National Employment | Jun | -2.760M | 3.000M | 2.369M |
| Wed 1 Jul | Construction Spending | May | -2.9% | 1.0% | -2.1% |
| Wed 1 Jul | ISM Mfg PMI | Jun | 43.1 | 49.4 | 52.6 |
| Thu 2 Jul | Non-farm Payrolls | Jun | 2.509M | 3.000M | 4.800M |
| Thu 2 Jul | Unemployment Rate | Jun | 13.3% | 12.3% | 11.1% |
| Thu 2 Jul | Average Earnings | Jun | -1.0% | -0.7% | -1.2% |
| Thu 2 Jul | Initial Jobless Claims | Week of Jun 22 | 1.480M | 1.355M | 1.427M |
| Thu 2 Jul | Factory Orders | May | -13.0% | 8.6% | 8.0% |