The NAHB Housing Market Index came out much stronger than expected. Here's a quick run-down:
- Housing Market Index 65 vs 60 forecast, 59 previously
- Current Single-Fam Sales 71 vs 65 previously
- Prospective Buyers 48 vs 44 previously
- 6-mo outlook 71 vs 66 previously
This brings the headline index back to its post-crisis highs seen last October (data released in Nov 2015). Despite the balmy result, bond markets aren't responding. That's not too surprising, given that bonds typically don't respond to this report, but it's welcome news nonetheless.
Bond markets are also weathering an ongoing storm of "supply" in the form of new corporate bonds. If you have yet to read our primer on how corporate bond issuance can affect mortgage rates, here it is. Corporate supply isn't as heavy as it was last week, but there has been at least one big deal (Shire) announced. That announcement accounts for some of the weakness in bonds leading into the 9:30am NYSE open.
With that out of the way, bonds look willing to at least TRY to hold their ground without breaking through Friday's high yield ceilings. There is no more economic data on tap for today.
