Register or Sign in        Email This Page     Link To This Page    
Visit MND at MBA in NYC!
2,000,000
# of Visitors Per Month
 

Send Article via Email

REGISTERED USERS (Free!):
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 1 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:
Harry Chriest |
Mortgage News Daily

Message:   YOUR MESSAGE HERE
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.
5yr Auction Preview
Posted to: Micro News
Wednesday, March 26, 2014 12:58 PM

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

MBS are still 6/32nds higher on the day and only 2/32nds off their best levels.  The upcoming 5yr auction at 1pm remains the next potential chance for bigger movement.

Two of the key metrics in assessing the auction's performance are the demand (measured by the 'bid-to-cover' or BTC) and the 'high yield' (which, for the purposes of Treasury auctions is the only one that matters).

The BTC can be measured against past performance.  In that regard, the last auction had the strongest levels of demand since September 2012.  The BTC was 2.98 in February, but as low as 2.42 in December.  The average of the past 4 is 2.65

The yield can be measured against the 1pm yield level of 5yr When-Issued trading.  It's currently at 1.73-1.731, though may change in the next few minutes.  If the high yield is lower than that, it's a net-positive for bond markets in general, and vice versa if it's higher.

More background info on auction watching HERE.




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 4.24%
  • |
  • 15 Yr FRM 3.39%
  • |
  • Jumbo 30 Year Fixed 4.09%
MBS Prices:
  • 30YR FNMA 4.5 107-16 (0-03)
  • |
  • 30YR FNMA 5.0 109-32 (0-02)
  • |
  • 30YR FNMA 5.5 111-06 (0-00)
Recent Housing Data:
  • Mortgage Apps -7.23%
  • |
  • Refinance Index -10.65%
  • |
  • FHFA Home Price Index 0.67%