It’s All About the Stimulus

Yesterday’s late afternoon proposal of yet another stimulus plan put forth by Republican leaders has breathed new life into prospects of a possible legislative bill coming to fruition before year’s end. This latest plan, delivered to Democratic leaders by Treasury Secretary Mnuchin, reportedly has the blessing of President Trump and Senator Mitch McConnell and would total around $916B. Democratic leaders have yet to sign on.

Earlier today, the Mortgage Bankers Association announced that, for the week ending December 4th, Mortgage Applications fell 1.2%. Purchase applications fell 5% after rising 9% the prior week. Refi applications rose 1.8% on the heels of the prior week’s 4.6% decline. Seventy-two per-cent of applications were for refis versus the prior week’s 69.5%. Later this morning, the BLS will release its JOLTS report and that is expected to show that new job openings fell in October to 6.3M from 6.44M. The Treasury will also be auctioning $38B Ten-Year notes later today.

At the moment, equity indices have some small green arrows as Treasuries endure a mild sell-off. The yield on the Ten-Year has risen slightly to 94 basis points while the Long Bond rests just below 1.70%. The Two-Year’s yield is up one basis-point to 0.15%. Crude oil is little changed at $45.81 and gold is off about $10 to $1,860.