| 121. | Mortgage Rates Remain at Higher Levels
U.S. Treasury securities held steady on Tuesday despite the strongest gain in producer prices in 15 years. The September Producer Price Index (PPI), which monitors inflation at the wholesale level, soared 1.9 percent - far above the projected 1.4 peTreasuries also got a lift from a Treasury Department report showing $91.3 billion moving into U.S. assets in August - and much of it into Treasuries. This is the best inflow since April 2004, and it covers the U.S. trade deficit, which hit $59 billi..
 |
| Tuesday, October 18, 2005 |
| | 122. | Mortgage Rates Stick at Firmer Levels
The recent weeklong selling spree in the longer end of the yield curve lost some momentum on Monday as Treasury securities yields, which move opposite of prices, stayed steady to only slightly firmer. That meant rates lenders charge on many key mortRenewed gains in crude oil prices, which saw nearby futures rise $1.73 (2.76 percent) a barrel to $64.36 on Monday due to jitters about Hurricane Wilma, kept the market aware of the inflationary implications of high energy costs for consumers. But a ..
|
| Monday, October 17, 2005 |
| | 123. | 30-Year Mortgage Hits 15-Month High
Another day of selling in the bond pits sent prices of U.S. Treasury securities down and their yields, which move in the opposite direction of prices, way up on Friday. The omni-present fear of inflation, which erodes the value of bonds, was again atThe session began with buying thanks to a Consumer Price Index (CPI) for September that showed inflation to be well-contained. Although the CPI rose 1.2 percent - with 90 percent of the increase due to gains in energy prices - the core rate, which el..
|
| Friday, October 14, 2005 |
| | 124. | Mortgage Rates Keep Movin' Up
Selling in U.S. Treasury securities continued on Thursday amid fresh signs of inflation and the rate hikes that it will bring. Investors baled out of longer-term issues that are more adversely affected by inflation, as it erodes their value to a greaOne of the pressures on Treasuries came from an unexpected source. U.S. import/export price indexes for the previous month are generally acknowledged then ignored, but traders could not dismiss the 2.3-percent rise in import prices - the biggest one-..
|
| Thursday, October 13, 2005 |
| | 125. | Mortgage Rates Continue to Climb
Worries about inflation and rising interest rates continued to plague bond traders on Wednesday. Minutes from the Sept. 20 meeting of the Federal Open Market Committee, released on Tuesday, also further weighed on U.S. Treasuries. Fed concerns regarFed officials have voiced concerns about inflation, which erodes the value of fixed-rate assets such as bonds. And these hawkish comments, which unanimously reinforced the need for further rate hikes, sent the yield on the benchmark 10-year note to a..
|
| Wednesday, October 12, 2005 |
| | 126. | Mortgage Rates Unchanged
All of Tuesday's concerns about what the minutes of the Sept. 20 meeting of the Federal Open Market Committee would say were for naught. Inflation - resulting largely from rising energy prices -- was shown to be uppermost in the minds of CommittThis left no doubt that more rate hikes are on the way, but the markets have priced them in, so reaction was muted. Talk of inflation put pressure on the long bond, as it is more vulnerable to inflation, which erodes the value of fixed-rate assets. ..
|
| Tuesday, October 11, 2005 |
| | 127. | Treasury Holiday Leaves Mortgage Rates on Hold
The bond markets were closed on Monday in observance of Columbus Day, leaving U.S. Treasury yields at Friday's levels. The stability in yields, which move in the opposite direction of prices, allowed mortgage lenders to hold rates steady. The staStocks Beaten Down by Inflation Fears, Bad News, ..
|
| Monday, October 10, 2005 |
| | 128. | Mortgage Rates Remain in Line
The September employment report showed a loss of 35,000 jobs in the wake of the hurricanes - the first decline since May 2003. But the weaker-than-expected data led analysts to believe the economy must be strong to withstand such a hit. Estimates on Employment numbers, which are likely to be revised, showed that the retail sector lost about 88,000 jobs - many not hurricane related. Jobs in leisure and hospitality fell by 80,000 and some of those resulted from the storms. But other areas along th..
|
| Friday, October 07, 2005 |
| | 129. | Mortgage Rates Continue High But Firm
U.S. Treasury securities began Thursday to the upside, bolstered perhaps by the increase in first-time jobless claims. But buying soon turned to selling as bond traders digested yet another statement by a Fed official - this time from Kansas City FedFed officials have been stumping all week, preparing the markets for another two rounds of credit tightening, and the messages have weighed on the markets. Traders also exercised caution due to Friday's September employment report. When the marke..
|
| Thursday, October 06, 2005 |
| | 130. | Mortgage Rates Remain Steady
A huge drop in the index of service-sector conditions and a slide in the price of oil ignited buying in U.S. Treasury securities on Wednesday in spite of repeated assurances by several Fed officials that short-term interest rates will continue to risThe Institute of Supply Management's (ISM) index on services plunged to 53.3 in September from 65 - its lowest level since April 2003, and well below estimates for a decline to 60. More worrisome was a bigger-than-expected increase in the 'pr..
|
| Wednesday, October 05, 2005 |
| | 131. | Mortgage Rates Continue to Edge Up
U.S. Treasury securities found buyers on Tuesday thanks to falling oil prices, but activity fell well short of a rally. Prices ticked up and yields, which move in the opposite direction of prices, came off two-month highs reached on Monday. , There are two schools of thought regarding oil prices. One, high energy prices could slow the economy and lessen the need for Fed rate hikes -- a pro-Treasury stance; or two, high energy prices will cause inflation and the rate hikes will keep coming..
|
| Tuesday, October 04, 2005 |
| | 132. | Mortgage Rates Climb
Mortgage rates climbed over the weekend in the wake of Friday's sell-off in U.S. Treasury securities. And they continued to edge up on Monday due to further signs of inflation. The ISM index on manufacturing conditions shot past analysts' expThe ISM index for September rose to 59.4 from 53.6 in August when analysts were expecting a decline to 52. Although new orders and employment within the sector rose, it was the leap in the 'prices paid' index that sounded the inflation alarm..
|
| Monday, October 03, 2005 |
| | 133. | Mortgage Rates Hold at Higher Levels
It was the worst quarter for U.S. Treasury securities in more than a year. Prices fell as traders fretted about the recurrence of inflation, while yields, which move in the opposite direction of prices, climbed. The steady increase in yields over theFriday's economic reports did not provide the Fed with an excuse to change direction. Personal Spending in August rose 0.5 percent -- more than the 0.3 percent increase in August and better than the 0.3-percent increase that was forecast. Income,..
|
| Friday, September 30, 2005 |
| | 134. | 30-Year Fixed Eyes 5.75 Percent
A steep dive in first-time unemployment claims and yet another sign of inflation ignited selling in U.S. Treasury securities on Thursday. Traders are ultra-sensitive to any signs of inflation, which erodes the value of fixed-rate assets, and they areThe two economic reports released on Thursday suggested inflation. First-time unemployment claims fell unexpectedly, sliding by 79,000 to 356,000 - the largest one-week drop in more than 13 years, and far below analysts' forecasts of 420,000. And..
|
| Thursday, September 29, 2005 |
| | 135. | Mortgage Rates Hold at Higher Levels
A huge jump in Durable Goods Orders for August spurred a round of selling in U.S. Treasury securities Wednesday morning. But selling slowed as traders regained equilibrium and considered the negative effects the hurricanes could have on business spenThe sole economic report for the day moved the markets, with orders for durable goods - big-ticket items meant to last more than three years - rising by a whopping 3.3 percent.
This was far stronger than the estimated 0.8 percent gain. Metals, mach..
|
| Wednesday, September 28, 2005 |
| | 136. | Mortgage Rates Continue to Edge Up
Two bond friendly economic reports couldn't shake concerns about what Fed Chief Alan Greenspan would say in his speech to the National Association of Business Economics in Chicago (via satellite) on Tuesday afternoon. U.S. Treasury securities werComments by two Fed officials on Monday night compounded selling, as they reiterated earlier comments by other FOMC members indicating that the Fed would continue in its credit-tightening program, as rates are presently too low to achieve the neutral..
|
| Tuesday, September 27, 2005 |
| | 137. | Treasuries Fall, Mortgage Rates Rise
Hawkish comments from two Fed officials and lighter-than-expected damage from Hurricane Rita spurred strong selling of U.S. Treasury securities on Monday. Chicago Fed president Michael Moskow and Fed governor Susan Bies said, in separate speeches, thThe fact that Hurricane Rita was not as severe as feared also weighed on Treasuries. Although oilrigs and refineries suffered some damage and will not be back in full production for weeks, many refineries in Texas, which could have been targets, esc..
|
| Monday, September 26, 2005 |
| | 138. | Rates on Hold
Another downgrade of Hurricane Rita - this time to a Category 3 - and concern that China will curb its buying of U.S Treasury securities wreaked havoc on the bond markets Friday, sending prices tumbling and yields, which move in the opposite directioChina rattled the Treasury markets as it took another step toward currency flexibility (China freed the yuan from the dollar earlier this year), raising fear that it would decrease the need to purchase Treasuries. Since China is second only to Japan ..
|
| Friday, September 23, 2005 |
| | 139. | Mortgage Rates Continue to Tick Up
A dip in the price of oil and the downgrading of Rita to a Category 4 hurricane stalled buying in U.S Treasury securities on Thursday, after an active start. The somewhat diminished strength of Rita relieved some concerns about the effect that it wouThe Fed said in its statement Tuesday that Hurricane Katrina would be a setback in the near-term, but pundits speculate that a second such assault could be enough to interrupt the Fed's credit-tightening program. There is concern that high energ..
|
| Thursday, September 22, 2005 |
| | 140. | Mortgage Rates Dip as Treasuries Jump
Treasury securities prices jumped on Wednesday, while mortgage rates dipped, as the market mulled the impact of more weather-induced hikes in energy prices and the kept Tuesday's Federal Reserve rate hike in its sights. Treasury yields, which movNews that Hurricane Rita now has strengthened into another potentially devastating Category 5 storm that could hit the Gulf Coast boosted crude oil prices sharply, with lead-month crude oil futures briefly topping $68 a barrel before shaving its gain..
|
| Wednesday, September 21, 2005 |
| | 141. | Fed Raises Rates Again - Mortgage Rates Not Affected
The Federal Open Market Committee on Tuesday raised short-term interest rates for the 11th straight time, hiking the fed funds target rate to 3.75 percent - its highest level in more than four years. Although this is the rate that banks charge each oAlthough the Fed acknowledged that the impact from Hurricane Katrina would be a setback in the near term, it said it does "not pose a more persistent threat. Higher energy and other costs have the potential to add to inflation pressures." T..
|
| Tuesday, September 20, 2005 |
| | 142. | Fed Raises Rates for 11th Time
The U.S. Federal Reserve on Tuesday raised short-term interest rates by another 25 basis points, the 11th consecutive quarter-point rate hike in 15 months., The Federal Open Market Committee increased the target on the fed funds rate, its key tool for adjusting monetary policy, to 3.75 percent from 3.50 percent and to its highest level in more than four years. The move matched many pundits' expectati..
|
| Monday, September 19, 2005 |
| | 143. | Mortgage Rates March Up
Another sell-off in U.S. Treasury securities on Friday led to the biggest one-week decline in prices in more than two months. Bond traders relegated several friendly economic reports to the back burner and dwelled on signs of inflation and concerns oTreasuries opened the session, still stinging from Thursday's regional manufacturing indexes from Philadelphia and New York that showed the prices-paid components climbing from the 20s to the 50s. The increases clearly have inflationary overtones..
|
| Friday, September 16, 2005 |
| | 144. | Mortgage Rates Continue to Edge Up
U.S. Treasury securities didn't exactly rally on bland inflation news, and they accepted the big rise in first-time unemployment claims as a given. The regional manufacturing index stirred sellers, coming in a bit stronger than expected. But it wOn Wednesday all the focus was on the Consumer Price Index (CPI), but it came in right on target. The CPI rose 0.5 percent - the same as in July - and the core index, which excludes volatile food and energy prices, edged up by an expected 0.1 percen..
|
| Thursday, September 15, 2005 |
| | 145. | Treasury Yields Rise on Retail News, Mortgage Rates Follow
U.S. Treasury securities rallied Wednesday on the initial Retail Sales report that showed sales plunging 2.1 percent in August. This was nearly double the 1.3-percent decline that was forecast, and far short of the 1.8 percent increase in July. Bond A report on Industrial Production and Capacity Utilization for August was more bond friendly, although far less influential. Industrial Production rose 0.1 percent, which was the same as in July but below forecasts for a 0.4 percent increase. It was ..
|
| Wednesday, September 14, 2005 |
| | 146. | Mortgage Rates Retreat
Mortgage rates retreated to previous levels on Tuesday after staging a one-day surge on Monday. A report reassuring traders of U.S. Treasury securities that inflation is indeed under control allowed buyers to tiptoe back into the bond markets. Fear oThe Producer Price Index (PPI), which measures inflation at the wholesale level, rose by a less-than-expected 0.6 percent in August. Analysts were forecasting a 0.7-percent increase in PPI and a 0.1-percent rise in the core rate, which excludes vola..
|
| Tuesday, September 13, 2005 |
| | 147. | Mortgage Rates Jump
A trio of reports weighed on U.S. Treasury securities on Monday, sending prices down and yields, which move in the opposite direction of prices, back up to two-week highs. Meanwhile, oil prices continue to fall and that put big pressure on TreasuriesIn addition to the above, there are some key inflation data due out this week that are of concern to traders, as well as the Advance Retail Sales for August. Tuesday’s Producer Price Index (PPI) for August, which measures inflation at the wholesale l..
|
| Monday, September 12, 2005 |
| | 148. | Mortgage Rates Level Off
U.S. Treasury prices, which move opposite of yields, rose early Friday on escalating oil prices but then pulled back later as oil prices turned around and eroded. Traders believe that high energy costs will slow the economy on its own, without intervAccording to fed funds futures, the probability of the Fed raising rates is 90 percent for the Sept. 20 meeting, 40 percent for the November confab and 75 percent for December. The more-telling statistic is the 98-percent certainty that fed fund fut..
|
| Friday, September 09, 2005 |
| | 149. | Mortgage Rates Continue Creeping Up
U.S. Treasury securities prices held firm on Thursday during a session that saw little in the way of movement. Treasuries edged down on first-time employment claims, which were fewer than expected, and continued to slide on oil inventory numbers, whWhen the markets closed on Thursday Treasury yields, which move in the opposite direction of prices, were near where they opened, but the yield on the benchmark 10-year note has risen substantially over the past week. On Sept. 1 it closed at 4.03 per..
|
| Thursday, September 08, 2005 |
| | 150. | Mortgage Rates Edge Upward with Treasuries
U.S. Treasury securities prices lost ground for a third consecutive day Wednesday as yields, which move the opposite direction, gained ground, and rates on many mortgage products followed suit and edged higher as well., Treasuries lost ground Wednesday on uncertainty about the near-term price outlook and after mixed economic data. Some stabilization in crude oil prices after recent pullbacks from record highs left traders on squishy footing, especially as they diges..
|
| Wednesday, September 07, 2005 |
| |
