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Daily Market Update 5/19/16

Rates were little changed Thursday as mortgage-backed securities (MBS) recovered from yesterday’s late losses.  MBS prices sank late Wednesday following the release of detailed Minutes from last month’s Fed meeting indicating a greater likelihood of a June rate hike than investors had previously expected.  In today’s economic news, weekly Jobless Claims fell to 278,000, slightly above forecast.  The Philly Fed regional manufacturing index declined to -1.8, well below expectations.  Readings below zero indicate contraction in manufacturing in the Philadelphia region.  Stocks moved lower as speculation grew that a terrorist attack may have been responsible for a missing Egyptair flight from Paris to Cairo.  No other key data will be released today.

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