|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
Bond Markets Weaker After Cyprus Bank Headlines
Posted to: Micro News
Thursday, March 21, 2013 11:51 AM
MBS and Treasuries moved quickly, but moderately into weaker territory following Bloomberg headlines indicating that 'Cyprus Popular Bank' would be shut down and split into good/bad banks. Rather than serve to spook risk markets with a "bank shut-down," the fact that depositors are being quarantined by the split (and assets under €100 bln guaranteed) is seen as a net-positive for EU contagion.
The Euro moved quickly off it's lows with domestic equities and bond markets following. The moves have been moderate so far and MBS remains inside the morning's range with Fannie 3.0s still up 3 ticks at 102-24. 10's are in line with levels from earlier in the morning at 1.9407. No reprice risk on these headlines, but they are serving as a speedbump to further gains for now.
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.