|This email was sent to you by:|
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 Lows Ahead Of FOMC, But Trend Is Sideways
Posted to: Micro News
Wednesday, March 20, 2013 1:52 PM
Despite the fact that MBS have hit their lowest levels of the session roughly 10 minutes before the FOMC party kicks off, the broader trends in bond markets and equities remains more sideways than "weak." We just happen to be on the far edge of sideways.
This doesn't mean that negative reprices are an impossibility. In fact, with a gap of 5 ticks between highs and lows, it's possible, but most lenders put out rate sheets when prices were only 2-3 ticks higher, if that. As such, any negative reprices would be emotional decisions based on the steady move from highs to lows since noon. Most will likely wait for any post-FOMC volatility to make itself apparent.
Fannie 3.0s are currently down 7 ticks at 102-28 and 10yr yileds are up 4bps on the day at 1.9442. Stocks are flat after opening up roughly 10 points higher in the S&P.
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.