DAILY COMMENTARY |
Recap: Friday was a day of crazy volatile bond action, but this time it helped rate sheets. Bonds improved on optimism that some kind of deal would be done with Iran that would improve oil flow from the Middle East, with oil prices moving lower. Most lenders repriced better on the day, and my end of day advice was to take the money and run. The reality though was that although any improvement is a good improvement, rates didn't really rebound much. A great way to end the week, if you saw a reprice better. Still, it doesn't tell us much about what we can expect for next week, other than maybe more volatility. Lock? Float? I still lean towards locking, as long as you got a reprice better today. Next weeks rate sheets will depend on the headlines and oil prices, and that is anyone's guess. Have a great weekend, TGIF!! Rate outlook for today... Rate sheets today are going to slip from any reprices you saw on Friday and be much closer to what you saw with Friday's morning rate sheets. The reason for bonds losing ground has a lot to do with the situation in Iran and fading optimism about a deal that would help oil move through the Strait of Hormuz.
Reprice risk on the day is moderate. We could see bonds continue to sell off. We've seen a lot of heavy selling in the last couple of weeks. There's no economic data today, so expect bonds to continue to follow oil prices (which are currently higher, by the way) and headlines coming out of the Middle East. There is a small chance we could see improved rate sheets once again if the headlines about the Middle East reignite that optimism that a deal is going to get done soon. |
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