Shiny Trinket

Israel retaliated against Iran last night. Tit for tat may have run its course, the Israeli response killed no one, the damage appears to be light and may cool things down between the two countries. Iran downplayed the attack. An Iranian military official signaled Tehran doesn’t feel compelled to react to the blasts. The reaction in markets given the soft response sent US rates lower in early trading, yesterday the 10 year note yield increased 5 bps on concerns that a serious response from Israel would come over the weekend. This morning the note yield saw volatility, on the initial report of the response the 10 year yield dropped to 4.50%, -14 bps but it lasted just a minute or two before the yield increased to 4.61% -2 bps from yesterday’s close. At 9 am MBS prices were up 9 bps from yesterday. Crude oil and gold initially spiked but by 9 am ET back to yesterday’s closing levels.

There are no economic reports today.

At 9:30 am the DJIA opened +54, NASDAQ -82, S&P -9. 10 year at 9:30 am 4.61% -3 bps. FNMA 6.0 30 year coupon at 9:30 am +5 bps from yesterday’s close and -18 bps from 9:30 am yesterday, the 6.5 coupon at 9:30 am -20 bps from 9:30 am yesterday.

The rest of the day looks to be quiet, there is a slight fear Israel will do more than it did last night but that isn’t likely. Both countries now appear to have concluded the dust up that sent markets reeling early this week. Stock indexes, gold, and crude oil all generally unchanged at 10 am as markets assess the that conflict between Israel and Iran is now completed.

PRICES @ 10:00 AM

10 year note: 4.62% -1 bp

5 year note: 4.67% -1 bp

2 year note: 4.99% unch

30 year bond: 4.71 -2 bp

30 year FNMA 6.0: @9:30 am 99.31 +5 bp (-18 bps from 9:30 am yesterday)

30 year FNMA 6.5: @9:30 am 101.09 +3 bp (-20 bps from 9:30 am yesterday)

30 year GNMA 5.5: @9:30 am 98.12 +8 bp (-9 bps from 9:30 am yesterday)

Dollar/Yuan: $7.2404 +$0.0022

Dollar/Yen: 154.59 -0.05 yen

Dollar/Euro: $1.0668 +$0.0024

Dollar Index: 105.92 -0.23

Gold: $2,398.40 +$0.40

Bitcoin: 64,980 +1433

Crude Oil: $82.82 +$0.09

DJIA: 37,951 +176

NASDAQ: 15,535 -67

S&P 500: 5011 unch

In the real estate industry since 1985, Julie DeMarcus started her career with a local title company, worked her way to a Certified Escrow Officer and then switched gears in 1993 to mortgage lending. Julie helps her clients make sense of the often confusing world of lending. Working closely with her clients, Julie strives to produce a smooth, stress-free transaction. Thanks to her attention to detail and superb customer service, her client base has increased exponentially over the years. Her dedication to her clients continues to be a hallmark of her business. A local resident of the Santa Ynez Valley since 1991, Julie has been married to Andy since 1988 and has two grown children, Zach and Nicole.

All information furnished has been forwarded to you and is provided by thetbwsgroup only for informational purposes. Forecasting shall be considered as events which may be expected but not guaranteed. Neither the forwarding party and/or company nor thetbwsgroup assume any responsibility to any person who relies on information or forecasting contained in this report and disclaims all liability in respect to decisions or actions, or lack thereof based on any or all of the contents of this report.

Company Licenses: CA Bur of Real Estate-Real Estate Broker # 01308080 NMLS # 240525 Loan Officer Licenses: CA Bur of Real Estate-Real Estate Broker #01175903 NMLS #273328