02 Nov Big News Week
Good afternoon everyone. I hope you all had a good Halloween!
If you did not see our commentary on Friday, make sure you check it out. We received higher than expected inflation numbers and talked about the especially rapid inflation growth over the last five months. On top of inflation, we expect more rate volatility heading into the election.
While today is a quiet day, this week is will be packed with news. There is a Fed meeting this Thursday. We are expecting to receive news whether or not the Fed will start to buy up long term mortgage securities. This is an attempt by the Fed to get ahead of the rising trend of longer term mortgage rates. This is also a jobs week, so we will be getting statistics on job creations and unemployment from last month.
Mortgage backed securities surmounted both their 25 and 50 DMA and are currently sitting on top of their 25. There is room to the upside; however, we are holding a locking bias unless you are able to closely watch the market.