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

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 6 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.
Big Improvements Overnight Moderating Into Domestic Session
Posted to: Micro News
Friday, January 24, 2014 9:13 AM

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

It's another data-free session and global financial markets have taken the opportunity to freak out like it's going out of style.  Risk assets were pummeled relentlessly and safe-havens experienced mind-bending improvements.  For instance, 10yr yields, who--a few days ago--were facing resistance at 2.82, fell all the way to 2.706!  All of this has been in lock step with stocks, Yen, and 47 other polarized risk assets.

[Image or graph removed from email. View full article with images]

The above chart of Treasuries, S&P, and Yen is a few minutes old now.  They've all bounced in unison, but just slightly.  Point being, we can't yet conclude that the mind-bending move lower is unequivocally giving way to a mind-bending move in the other direction.

Then there's MBS.  Poor old MBS are just now barely breaking above yesterday's highs (whereas Treasuries haven't been in yesterday's territory at all since before 3am).  As we discussed yesterday, MBS just can't and won't keep up with Treasuries into these risk-off moves. 

The highest probability bet for the rest of the day is for bond markets to continue following stocks et. al.  The overnight rally was very opportunistic, and the fact that it deviates so far from expected ranges means that trading positions get forcibly "stopped-out."  In other words, anyone with a trading position that benefits from higher rates is forced to become a buyer at some point if rates move far enough lower.  That phenomenon (forced short-covering) along with simply algorithmic buying due to technical tripwires being crosses, is happening en masse today.  When this panic has run its course, there's a risk the opposite will happen en masse.

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 4.5 109-02 (0-02)
  • |
  • 30YR FNMA 5.0 110-19 (0-00)
  • |
  • 30YR FNMA 5.5 111-27 (-0-01)
Recent Housing Data:
  • Mortgage Apps 10.03%
  • |
  • Refinance Index 11.33%
  • |
  • Purchase Index 8.43%