Register or Sign in        Email This Page     Link To This Page    
Visit MND at MBA in NYC!
# of Questions

Send Article via Email

Can forward to 6 email addresses at a time. Register or Login

Registered users also get the additional advantage of Co-branded Emails and Landing Pages. Learn more about these features.

Your Name: 
Your Email: 
I want to forward this to
(Enter Email Address Below) :
Include a Personal Message (optional)

Please add 2 and 2 and type the answer here:
Leave this field blank.
Email Preview Below:
This feature is now 100% free. Learn More About Co-branded Email and our other Co-branded Services.
This email was sent to you by:
Anonymous |
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.
Positive Reprices as Stocks/Bonds Test Technical resistance
Posted to: Micro News
Monday, January 13, 2014 1:34 PM

Forward this email:  Send a copy of this story to someone you know that may want to read it.

MBS and Treasuries both moved to test technical boundaries this morning and are now breaking out this afternoon (aka "testing" for confirmation).   That said, confirmation would be slightly less conclusive today as volume will struggle to make it to HALF of Friday's.

For MBS, the technical barrier at 104-00 has since given way to 104-02.  10yr yields have a pivot point between 2.836 and 2.82.  They're currently right in line with the latter.

One contributing factor has emerged in the form of asset allocation trading, which is just a fancy way to say money is flowing out of stocks and into bonds (or vice versa depending on the day).  Considering that S&P shed more than 10 points in the hour from 12:22 to 1:22pm, the portfolio rebalancing is definitely favoring bonds.  Think of this as an incremental boost as opposed to the most direct driver.

The net effect is a 9/32nds gain in Fannie 4.0s, with almost all of it arriving AFTER the first round of rate sheets.  This has made for quite a few positive reprices so far today.  The possibility remains on the table.

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.

Forward this email:  Send a copy of this story to someone you know that may want to read it.


More From MND

Mortgage Rates:
  • 30 Yr FRM 3.64%
  • |
  • 15 Yr FRM 2.93%
  • |
  • Jumbo 30 Year Fixed 3.60%
MBS Prices:
  • 30YR FNMA 4.5 108-32 (0-02)
  • |
  • 30YR FNMA 5.0 110-19 (-0-00)
  • |
  • 30YR FNMA 5.5 111-28 (0-02)
Recent Housing Data:
  • Mortgage Apps 10.03%
  • |
  • Refinance Index 11.33%
  • |
  • Purchase Index 8.43%