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Mon, Dec 01 - 1:06 PM ET
The National Bureau of Economic Research said today the US entered into a recesion in December of 2007. The Dow off 450 points. MBS still in positive territory.
12:38 PM ET - New data shows 10 Yr T Note yield the lowest since 1955.
11:47 AM ET - The Dow falls 400 points halting a 5 day advance. Concerns regarding the global economic slump is deepening and consumers access to credit shrinks. The fall was exasperated by a weak manufacturing report released today. Oil falls below $50/barrel at $49.75.
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Current Price of FNMA 6% Bond: $101.88, +3bp After rocketing higher last week, Stocks are under selling pressure and this has helped Mortgage Bonds modestly improve. The Institute of Supply Management will be reported at 10am. The market may not have much reaction to this release - but stay tuned. At 1:45pm ET today, Federal Reserve Chairman Ben Bernanke is speaking on the economic outlook at a Dallas Fed conference, Treasury Secretary Henry Paulson is due to give an update on the US economy and our good friend Richard "Loose Lips" Fisher is also scheduled to talk. Mr. Bernanke's speech could be very interesting as he has a chance to hint about further rate cuts - especially with the next Fed Meeting on December 16th. There are rumors swirling the Fed will take the Fed Funds Rate down to zero. But we think a move to .50% is more likely. The current Fed Funds Rate stands at 1%. Black Friday kicked off the holiday shopping season and the National Retail Federation estimated shoppers spent 7.2% more than last year. However, this is a result of the deep discounting seen by retailers. Mortgage Bonds are testing resistance at the best price levels of 2008. We will float, but be ready to lock should conditions change.
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| Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.
Economic Calendar for the Week of November 24 - November 28
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