CONSUMER STAPLES: Coca-Cola Europacific | Moody's moves to positive outlook

MBA composite mortgage applications increased 1.1% last week (sa) to essentially hold steady after a noisy period on swings in mortgage rates. Spreads to swap rates have stopped climbing although mortgage rates look set for a further increase ahead. 

• Overall applications stand at 53% of 2019 levels, close to the 51.5% in late March ahead of tariff announcements that sparked large gyrations in rates,
• That equates to 64% vs 61% for new purchase applications and 41% vs 41% for refis.
• The 30Y conforming rate ticked up 2bp last week to 6.86% despite an 11bp increase in the average 10Y swap rate over the week.
• It sees the mortgage rate to swap spread tighten for the first time last March, to 306bp from 315bp at what had been the widest since Feb 2024.
• That could mark a peak in what has been an additional 30-35bp tightening in lending standards since April but is just one week of data.
• Further mortgage rate increases are likely ahead with the 10Y swap rate currently trading 13bp higher than last week’s average. 

• MNI speaks to former BOJ executive director in charge of monetary policy and chief economist Kazuo Momma -- On MNI Policy MainWire now, for more details please contact sales@marketnews.com

• 3,000 SFRH6 1Y bundle (SFRH6-SFRZ6) +0.040 at 0657:34ET - likely swap-tied receiver with spreads moving tighter.