U.S. mortgage applications fell 4.3% in the week ended November 21 U.S. mortgage applications fell 4.3% in the week ended November 21 following a 4.9% jump the week before. This included a 4.8% drop in the purchase index and a 3.5% decline in refinancings. The index has declined in 4 of the past 5 weeks after surging 11.6% in the week ended November 17. The average rate on a 30-year fixed rate mortgage slid to 4.15% from 4.18%, while the 15-year rate declined to 3.35% versus 3.38%. The data continue to reflect a sluggish recovery in the housing market.
U.S. Durable Goods Preview U.S. Durable Goods Preview: October durable goods data will be released on Wednesday and orders are expected to decline a further 0.5% (median -0.6%) after their 1.1% decline in September. Shipments are expected to remain unchanged and inventories are expected to grow by 0.4% to match their September rate. Data in line with this forecast would leave the I/S ratio at 1.65 from 1.64.
Euro$ interest rate options update: some bearish call selling Euro$ interest rate options update: some bearish call selling has cropped up, with a sale 4k in Blue December 76/78/81 call butterflies. But March 2015s are still a half-tick firmer at 99.74, while the deferreds are 1-5 ticks higher out the back now, picking up over the course of the session in the wake of the confidence plunge and 5-year auction windfall.
Treasury Action: yields in the belly took a dive Treasury Action: yields in the belly took a dive on the extremely well bid 5-year auction results, which priced right through when-issued levels and was accompanied by very firm cover and indirect bid components. The current 5-year cash yield sank from over the 1.60% level to session lows near 1.58%, compared to the 1.595% award rate on the new notes. CNBC's bond professor Santelli even managed to pull out an "A+" on the report card.