|This email was sent to you by:|
Harry Chriest |
Mortgage News Daily
Email alerts, such as this one, are a free service
provided by Mortgage News Daily. If you would like to receive an alert when important news breaks
please register to join our community
MBS Hit Two Day Highs, Positive Reprices Not Inconceivable
Posted to: Micro News
Wednesday, January 09, 2013 3:02 PM
Bond markets definitely found their footing after the weaker-than-expected Treasury auction, perhaps realizing that had it not been for the 1 hour rally from noon to 1pm, the auction would have been stronger-than-expected. It wouldn't make sense, then, to trade to any weaker levels than those seen at noon, right?
Right! And so we haven't. In fact, MBS just hit session highs (best levels since FOMC Minutes), and 10yr yields are within striking distance of their lows of the day. That being said, it's a day before settlement and liquidity on the secondary market isn't at its peak. Couple that with the fact that we're only 2-3 ticks higher from rate sheet time and widespread positive reprices are far from guaranteed, but it's possible that an early adopter or two could at least offer a "stability reprice."
Fannie 3.0s currently up 3 ticks at 104-15 and 10yr yields down about a bp at 1.855.
More from MND:
If you would like to opt-out of receiving email forwards from this person please click here to remove your email address.