It’s a quiet morning in the markets with Treasuries little changed and S&P 500 futures a touch lower. Market participants are more focused on monetary policy this week, more specifically Thursday’s ECB meeting and next week’s Fed meeting. That said, an unexpected trade headline would quickly redirect market attention.
On another note, there’s been some chatter over the last week regarding the GSE Housing Reform Plan released by the Treasury Department last Thursday evening. GSE reform is something that’s been talked about for nearly 10 years since Fannie Mae and Freddie Mac went into conservatorship, but any attempt at passing legislation has fallen well short in Congress. This issue came back into focus this year when Mark Calabria was confirmed as head of the FHFA. He has been a big proponent of housing finance reform, particularly increasing the private market’s footprint. His team finally submitted their recommendations to Congress for legislative action, but as we’ve seen it characterized by some folks, it’s more of a “plan for a plan.” The expectations for Congressional action remain low, so it’s more about what can be done by administrative/executive order. Perhaps most import for investors of GSE-backed MBS, the report is careful to stress much caution with regards to altering the status of the guarantee and its impact on the stability of the MBS market. The plan calls for an explicit guarantee of eligible, conventional mortgages, similar to what “wraps” Ginnie Mae MBS. In other words, Calabria and Treasury Secretary Mnuchin are making it clear that they want to avoid market disruption.
Jason Haley
Managing Director, Investment Management Group
Date | Event | Survey | Actual | Prior | Revised |
9/9/2019 | Consumer Credit | $16.000b | $23.294b | $14.596b | $13.781b |
9/10/2019 | NFIB Small Business Optimism | 103.5 | 103.1 | 104.7 | — |
9/10/2019 | JOLTS Job Openings | 7331 | 7217 | 7348 | 7248 |
9/11/2019 | MBA Mortgage Applications | — | — | -3.10% | — |
9/11/2019 | PPI Final Demand MoM | 0.00% | — | 0.20% | — |
9/11/2019 | PPI Ex Food and Energy MoM | 0.20% | — | -0.10% | — |
9/11/2019 | PPI Ex Food, Energy, Trade MoM | 0.20% | — | -0.10% | — |
9/11/2019 | PPI Final Demand YoY | 1.70% | — | 1.70% | — |
9/11/2019 | PPI Ex Food and Energy YoY | 2.20% | — | 2.10% | — |
9/11/2019 | PPI Ex Food, Energy, Trade YoY | — | — | 1.70% | — |
9/11/2019 | Wholesale Trade Sales MoM | 0.50% | — | -0.30% | — |
9/11/2019 | Wholesale Inventories MoM | 0.20% | — | 0.20% | — |
9/12/2019 | Real Avg Weekly Earnings YoY | — | — | 0.80% | 0.90% |
9/12/2019 | Real Avg Hourly Earning YoY | — | — | 1.30% | 1.40% |
9/12/2019 | CPI MoM | 0.10% | — | 0.30% | — |
9/12/2019 | CPI Ex Food and Energy MoM | 0.20% | — | 0.30% | — |
9/12/2019 | CPI YoY | 1.80% | — | 1.80% | — |
9/12/2019 | CPI Ex Food and Energy YoY | 2.30% | — | 2.20% | — |
9/12/2019 | CPI Core Index SA | 264.1 | — | 263.569 | — |
9/12/2019 | CPI Index NSA | 256.586 | — | 256.571 | — |
9/12/2019 | Initial Jobless Claims | 215k | — | 217k | — |
9/12/2019 | Continuing Claims | 1675k | — | 1662k | — |
9/12/2019 | Bloomberg Consumer Comfort | — | — | 63.4 | — |
9/12/2019 | Monthly Budget Statement | -$195.0b | — | -$119.7b | — |
9/13/2019 | Import Price Index MoM | -0.50% | — | 0.20% | — |
9/13/2019 | Import Price Index ex Petroleum MoM | -0.10% | — | 0.00% | — |
9/13/2019 | Import Price Index YoY | -2.00% | — | -1.80% | — |
9/13/2019 | Export Price Index MoM | -0.30% | — | 0.20% | — |
9/13/2019 | Export Price Index YoY | — | — | -0.90% | — |
9/13/2019 | Retail Sales Advance MoM | 0.20% | — | 0.70% | — |
9/13/2019 | Retail Sales Ex Auto MoM | 0.10% | — | 1.00% | — |
9/13/2019 | Retail Sales Ex Auto and Gas | 0.20% | — | 0.90% | — |
9/13/2019 | Retail Sales Control Group | 0.30% | — | 1.00% | — |
9/13/2019 | Bloomberg Sept. United States Economic Survey | ||||
9/13/2019 | U. of Mich. Sentiment | 90.8 | — | 89.8 | — |
9/13/2019 | U. of Mich. Current Conditions | 107.8 | — | 105.3 | — |
9/13/2019 | U. of Mich. Expectations | 85.2 | — | 79.9 | — |
9/13/2019 | U. of Mich. 1 Yr Inflation | — | — | 2.70% | — |
9/13/2019 | U. of Mich. 5-10 Yr Inflation | — | — | 2.60% | — |
9/13/2019 | Business Inventories | 0.30% | — | 0.00% | — |
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