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22939 West Hacienda Drive | Grass Valley, CA 95949

Contact Juli Matta

Juli@JuliMatta.com
Ph: (530) 268-3333 | Cell: (530) 320-0004 | Fax: (530) 268-9674

Ca BRE #01031943 | NMLS #355267

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22939 West Hacienda Drive | Grass Valley, CA 95949

Contact Juli Matta

Juli@JuliMatta.com
Ph: (530) 268-3333 | Cell: (530) 320-0004 | Fax: (530) 268-9674

Ca BRE #01031943 | NMLS #355267

Tuesday, April 13, 2021
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Market Commentary

Updated on April 13, 2021 10:08:52 AM EDT

Yesterday’s 10-year Treasury Note auction didn’t go as well as hoped. The benchmarks showed average and below average demand for the securities. Fortunately, the bond market did not have a negative reaction to the results. However, yesterday’s sale prevents us from being too optimistic about today’s 30-year Treasury Bond auction. If today’s sale draws the same level of interest as yesterday’s auction, we may see bonds weaken and mortgage rates move slightly higher this afternoon.

March’s Consumer Price Index (CPI) was posted at 8:30 AM ET this morning, revealing a 0.6% rise in the overall reading and a 0.3% increase in the more important core data. Both readings were 0.1% higher than expected, indicating inflationary pressures at the consumer level of the economy were stronger the thought. That makes the data bad news for bonds and mortgage rates.

Tomorrow’s only release is an afternoon event. The Federal Reserves Beige Book report will be posted at 2:00 PM ET. This report is named simply after the color of its cover but provides opinion on economic conditions throughout the U.S. by Fed region. Since the Fed relies heavily on the contents of this report during their FOMC meetings, its results can have a fairly big impact on the financial markets and mortgage rates if it reveals any significant surprises. If there is a reaction, it will come during mid-afternoon trading.

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