|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
Back to Best Levels after FOMC Knee-Jerk
Posted to: Micro News
Wednesday, January 29, 2014 3:02 PM
As far as knee-jerk reactions to FOMC Announcements go, today's wasn't too big, but big enough to keep things interesting. The initial reaction to another round of tapering was a move toward weaker prices for bond markets, but this soon reversed course and leveled-off. Prices and yields returned to pre-FOMC levels just briefly and have now taken off into positive territory.
10's are carving out new multi-month lows and MBS new highs. Fannie 4.0s are up 13 ticks at 104-24 and 10yr yields are down 7.3bps at 2.6767. Equities markets and Yen have followed bond markets in lock-step, and emerging market currencies to a lesser degree.
Much like the earlier weakness wasn't far enough from rate sheets to suggest much by way of negative reprice risk, current strength isn't far enough in the other direction to guarantee positive reprices. That said, some lenders may still reprice based on the trend.
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.