Trading activity in the mortgage market this morning appears to be stuck in neutral - volume is light and directionless.
This morning's earlier release of the "as-expected" August Industrial Production and Capacity Utilization numbers together with a slightly softer-than-anticipated measure of manufacturing activity in the New York Federal Reserve district drew nothing more than a passing glance from traders.
Overnight Japan moved aggressively to sell yen in the international currency markets in an attempt to jump start its economic engines. The news garnered some early attention from market participants -- but when it became apparent that no other countries were going to join Japan in their first currency intervention endeavor in more than six years -- mortgage investors were quick to shrug the whole thing off.
Looking ahead to the balance of the week most analysts believe the release of tomorrow morning's August Producer Price Index followed on Friday by the August Consumer Price Index will prove of little help to investors attempting to plot the forward looking trajectory of the economy. If that assessment proves accurate, look for mortgage interest rates to generally take their directional cues from trading action in the stocks markets.
Higher stock prices will tend to draw mortgage interest rates fractionally higher. With mortgage note rates currently floating either at, or within a breath of their all-time historical lows, falling stock prices will not likely serve to push these note rates appreciably lower - though mortgage investor pricing may improve a little.
There are reasons to believe the Dow will probably put in a multi-day high between 10550 and 10650 before the close of trading on Friday.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment