Morning Report: DJT lays out his financial vision 8/8/16

Vital Statistics:

Last Change
S&P Futures 2179.0 3.0
Eurostoxx Index 351.5 0.5
Oil (WTI) 42.6 0.8
US dollar index 87.0 -0.2
10 Year Govt Bond Yield 1.60%
Current Coupon Fannie Mae TBA 103.3
Current Coupon Ginnie Mae TBA 104.2
30 Year Fixed Rate Mortgage 3.5

Markets are flattish on no real news. Bonds and MBS are down.

There isn’t much in the way of economic data this week – the week after the jobs report is invariably data-light. There will be no Fed-speak either.

TIAA agreed to buy EverBank Financial for about $2.5 billion.

3 month LIBOR hit 81 basis points this morning, which is the highest since May 2009. This will affect ARM pricing.

While US Treasuries have some of the highest yields in the world, foreign investors who want to hedge their currency risk are buying them for a negative yield. New money market rules will go into effect this fall, which will change the landscape for banks. Expect tightened credit conditions.

Donald Trump will lay out his vision for financial regulation today with a speech in Detroit. He proposes a moratorium on new financial regulations, a repeal of Dodd-Frank, eliminating the estate tax, dropping the corporate income tax to 15%, creating 3 tax brackets for individuals, and making bureaucrats in DC more focused on creating jobs.

The CFPB updated their mortgage servicing regulations.

The July Fed Labor Market Conditions index rose by a point in July.

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