|This email was sent to you by:|
Tonya W. Kenon |
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
Negative Reprice Risk Increasing Slightly Ahead of Auction
Posted to: Micro News
Wednesday, October 09, 2013 12:24 PM
10yr yields--perhaps with a wary eye on the auction coming up at 1pm--just broke into new high yields for the day and MBS are right on the edge of breaking into new lows. With the earlier highs in MBS coinciding with some lenders' rate sheet print times, negative reprice risk is increasing, though not yet full-blown. Between the 10yr Auction and FOMC Minutes and hour later, there is plenty of potential market movement ahead.
Fannie 3.5s are down only 1 tick, and this is only 5 ticks off the highs (101-10 vs 101-15 earlier). 10's are only up 2 bps at 2.658. Reprices would be few and far between at these levels, but risks would increase if MBS broke into news lows by more than a few ticks for more than a few minutes.
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.