The week ahead is shaping up to be a barn burner

The week ahead is shaping up to be a barn burner. Month end, Quarter end, and the Employment Report for September are just a few of the events that could rock our world.

  • No news today but tomorrow will get the ball rolling with Case Shiller Home Prices and Consumer Confidence.
  • Wednesday’s focus will be on the ADP employment report, posting estimates for Friday’s jobs data.
  • On Thursday, Construction Spending and ISM Manufacturing will take center stage, only to give way to the all important Employment Report due out Friday at 7:30 am cst.
  • We expect a volatile week in bonds, stocks, and Austin mortgage pricing.

Stocks are having a good morning, up 125 points on the continued momentum trade that has carried the market for weeks. Technical trading is in charge here as the fundaments just don’t stack up. S&P’s at 1100 (currently 1060) should put a cap on it. The 30 year bond has been on a terror lately as well. Incredible curve flattening as real money traders are buying duration, both for yield and for month end extension needs. 30 year bonds are currently up 23/32’s (yield 4.05%) while the 10 year note is only up 7/32’s (yield 3.30%). Despite improvement in stocks, the long end of the curve (10’s through 30’s) continues to hold their gains. The next target is 3.26% on the 10 year note (currently at 3.30%). We will need a sustained break below that yield mark to confirm any further upside (rally). Given the week ahead (Employment Report) odds are good that this level holds.

About Max Leaman Austin Mortgage

Great Rates, Low Fees, Close on Time® – (800) 301-3405 Since 2001, Leaman Team has helped clients to purchase, refinance and renovate. The biggest distinction between lenders is their honesty, customer service, and ability to close on time.

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