Bond Market Update
Bond Market Update
Market Update
Thursday, December 7, 2023
What's going on and why does it matter?
Mortgage bonds opened lower this morning as the global bond market worries about the end of the negative interest rate policy in Japan. The Bank of Japan has recently announced that they'll allow interest rates to go up for the first time in a while and the market is starting to adjust to this reality. Meanwhile here in the US, the Initial Jobless Claims report came out this morning in line with market expectations.
What should you do about it?
Watch and see if mortgage bonds can bounce higher off their 200-day moving average, but be prepared to lock your rate if mortgage bonds fall below that level.
Economic Calendar
Economic reports that may impact mortgage rates this week:
| Date | Report | Period | Prior | Est. | Actual |
|---|---|---|---|---|---|
| Mon 4 Dec | Factory Orders | Oct | 2.8% | -2.8% | -3.6% |
| Tue 5 Dec | ISM Non-Mfg. PMI | Nov | 51.8 | 52.0 | 52.7 |
| Tue 5 Dec | JOLTS Job Openings | Oct | 9.553M | 9.300M | 8.733M |
| Wed 6 Dec | ADP National Employment | Nov | 113k | 130k | 103k |
| Thu 6 Dec | Initial Jobless Claims | Week ending Dec 2 | 218k | 222k | 220k |
| Fri 7 Dec | Non-Farm Payrolls | Nov | 150k | 180k | |
| Fri 7 Dec | Unemployment Rate | Nov | 3.9% | 3.9% | |
| Fri 7 Dec | Average Earnings | Nov | 0.2% | 0.3% | |
| Fri 7 Dec | U of Mich. Consumer Sentiment | Dec | 61.3 | 62.0 |