Daily Market Color

Yield Curve Flattens in Quiet Session

Yields mixed after release of jobless claims data. Treasurys were mixed today, the 2-year yield increasing ~1bp and the 10-year yield falling ~7bps. The move came after jobless claims data came in higher than expected, which boosted equities. The S&P 500 gained 1.75% on the day, while NASDAQ realized larger gains of 2.59%

Mortgage rates rise for first time in seven weeks. The average rate on a 30-year fixed loan climbed to 6.42%, up from 6.27% last week, according to data from Freddie Mac. Mortgage costs are more than double the average 2021 rate of 3.11%, a barrier to homebuyers that is contributing to a decline in prices. Still, home prices are nearly 11% higher than a year ago, and according to economists at realtor.com, the monthly payment for a median-priced home is $2,100, up more than 60% YoY. 

Day ahead. The bond market will close at 2:00 PM ET tomorrow. The partial session will be relatively quiet, with Chicago PMI data the headliner. Surveys predict that PMI will increase to 40 after falling to 37.2 points in November, which marked the third straight month of contractions. Have a happy and healthy New Year! 

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