|This email was sent to you by:|
Harry Chriest |
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 Market Snowball Ran Out of Steam; Early Hint of Negative Reprice Risk
Posted to: Micro News
Tuesday, December 10, 2013 11:00 AM
Fannie 4.0s have fallen to levels just on the edge of negative reprice risk for some lenders. This heavily depends on the time of day that an initial rate sheet came out. Fannie 4.0s are up 4 ticks on the day, but down 4-5 ticks from the morning's highs and 3-4 ticks from the first wave of lender rate sheets.
If we leveled-off here for the day, we'd probably avoid reprices, but the risk that we won't is reinforced by 10yr yields prodding at their highest levels of the day. Just as momentum carried us in one direction earlier today, it can take on a life of its own if it begins heading too far in the other direction. 10's are currently still 4 bps lower on the day, but up from 2.80 to 2.817 in the past hour.
A potential budget deal in the Senate may contribute to selling pressure if more developed headlines come across.
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.