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MBS Hit Session Lows. Reprice Risk Already?
Posted to: Micro News
Tuesday, January 29, 2013 11:30 AM
In short, yes... There's reprice risk already. So we'll keep this short. We're not seeing much outside post-Fed-buying volatility in bond markets combined with an intact stock lever pulling yields higher. Maybe we have a bit of a pre-auction concession being built in, but stocks and bonds have been too well-connected since 10am to overlook the "risk-on" stock-lever inspiration.
Fannie 3.0s are now down 4 ticks on the day at 103-11, far enough away from the 103-16 prices that prevailed during rate sheet print times to already introduce negative reprice risk. 10yr yields are up to 1.9758 and S&Ps are 3-4 points higher than their previous resistance ceiling.
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