Key Economic Data:
Durable Goods: These are big items like cars and appliances that last a long time.
GDP: Gross Domestic Product, which shows how much a country's economy is growing.
Jobless Claims: How many people are filing for unemployment benefits.
Corporate Profits: How much money companies are making.
Consumer Spending: How much people are spending on goods and services.
Treasury Yields and Economic News:
U.S. Treasury Yields: This is the interest rate the government pays to borrow money for 10 years.
When good economic news comes out, yields usually go up. When the news is bad, yields go down.
Recent News:
U.S. Treasury Yield: The 10-year yield is down by 1.2 basis points, now at 4.304%.
Canadian Dollar: Worth $0.7311 USD, and there’s no big change expected soon.
Upcoming Bank of Canada Meeting on July 24th:
They recently lowered rates by 0.25%, and people were worried about the Canadian dollar dropping, but it stayed the same.
Understanding the Data:
Durable Goods Orders: Orders for long-lasting items.
Actual: 0.10% (Good)
Previous: 0.20%
Expected: -0.10% (Bad for bonds)
GDP Growth Rate: How fast the economy is growing.
Actual: 1.40% (Neutral)
Previous: 3.40%
Expected: 1.40% (Neutral for bonds)
Jobless Claims: Number of new unemployment claims.
Actual: 233K (Good)
Previous: 239K
Expected: 236K (Bad for bonds)
Corporate Profits: How much money companies are making.
Actual: -2.70% (Bad)
Previous: 3.90%
Expected: -1.70% (Good for bonds)
Fed's Comments:
Federal Reserve: They control interest rates.
Fed Governor Michelle Bowman said they're not ready to cut rates until inflation goes down to 2%. She might even raise rates if needed.
What to Remember:
Good economic news usually means mortgage rates go up.
Bad economic news usually means mortgage rates go down.
Anything that causes inflation (prices going up) is bad for both bonds and mortgage rates.
Next Bank of Canada Announcement July 24, 2024.
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Tonia Mercer | The Mortgage Missus Inc.
About the author,
Tonia Mercer is an independent mortgage broker. She has been in the industry for 15 years, in 2021 she launched her own brokerage The Mortgage Missus Inc.
Tonia is passionate about financial education and believes that working with independent experts is the best way to get unbiased, professional advice. She has joined forces with local independent home and auto, financial advisor, legal, appraiser and real estate service providers.Effectively creating a concierge service for all things financial and real estate.
Tonia donates a portion of all mortgage revenue to Mercer's Mission, a street dog and cat feeding mission in the Dominican Republic. https://www.facebook.com/mercersmission