Send Article via Email

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.

More from MND:

• MND NewsWire: Fannie Forecast Serves up Feast for Housing Recovery Bulls
• MND NewsWire: Delinquencies to Decrease Slightly, Price Appreciation Sustainable -FICO Survey
• MBS Commentary: MBS MID-DAY: Morning Gains Give Way to Mid-Day Rout (again)
• Pipeline Press: Texas and Reverse Mortgages; More on Possible Ginnie Changes; Upcoming Training
• MBS Commentary: The Week Ahead: No Scheduled Data Before Wednesday's Important FOMC Minutes

If you would like to opt-out of receiving email forwards from this person please click here to remove your email address.