To recap the Thirty Capital Monday Morning Market Call: Last Wednesday’s solid Job Openings and Labor Turnover Survey (JOLTS) numbers (9,553K act. vs. 9,400K est. with a revision of -113K) weren’t enough to support rates as ISM manufacturing came in weak, and the Treasury announced lighter than anticipated upcoming issuance. Chairman Powell delivered a press conference perceived to be less hawkish than prior speeches, accelerating the downward move in rates. Good productivity numbers and weaker jobs numbers on Friday drove ten-year treasury rates almost 30 bps lower on the week. Powell will deliver two speeches this week.
The bid-ask spread persists for both buyers and sellers. Longer-term rates being higher for longer means sellers will need to inject equity into refinances until buyers see a path to asset appreciation.
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