Register or Sign in        Email This Page     Link To This Page    
Visit MND at MBA in NYC!
28,899
# of Forum Posts
Micro News Archives
Use the calendar to view Micro News posts from a specific date.
Today  |  Yesterday  |  Random
Bottom Right Default
State Name: New Jersey
State Name underscore: New_Jersey
State Name dash: New-Jersey
State Name lower underscore: new_jersey
State Name lower dash: new-jersey
State Name lower: new jersey
State Abbreviation: NJ
State Abbreviation Lower: nj
You are viewing Micro News from Friday, Mar 21, 2014 - View all recent Micro News
  • 3/21/14
    Ongoing Positive Reprice Potential Thanks to Treasuries and Conservative AM Rate Sheets

    Whereas the morning's gains has as much to do with MBS outperformance as anything, the afternoon has seen forced buying in Treasuries against a low volume backdrop.  The demand was fueled both by the April options expiry as well as corporate bond hedging. 

    Longer dated Treasuries also got a boost at the expense of 3yr and 5yr maturities both because of the ongoing 'flattening' of the yield curve (longer dated yields moving down and shorter-dated yields moving up relative to each other) as well as Fed speaker comments around 2:15pm.

    All told, the gains continue to be extremely limited for MBS with Fannie 4.0s only up 4/32nds (just 1/32nd higher than the last update!), but as we discussed, weakness and volatility in the morning resulted in rate sheets that were perhaps too conservative for a stable afternoon with moderate gains. On top of that, yesterday's rate sheets were generally weaker, despite stronger prices by the end of the day.  As such, reprices have become rather widespread with a few lenders coming back for a second pass.

    Category: MBS, UPDATE
    Share:   
  • 3/21/14
    Positive Reprice Potential as MBS Trickle into Highs

    We're currently seeing a synergistic combination of MBS outperformance (carrying over from yesterday) combined with just moderately positive tradeflows surrounding Treasury options expiries.

    Even then, Fannie 4.0s are up only 3 ticks on the day and 10yr yields are down only 1.4bps--still range-bound overall. 

    The positive reprice potential would be a factor of earlier rate sheets coming out shortly after MBS swung to the lows of the morning.  Even though prices began to bounce back before the rate sheets printed, the first sheets of the day will always take the entirety of morning price action into consideration. 

    The bounce back was "too new" to fully price in with the first sheets.  Hence the Wells reprice a few minutes ago, and the prospect for a few others while these prices hold. 

    Category: MBS, UPDATE
    Share:   
  • 3/21/14
    Bond Markets Move Into Positive Territory after Early Weakness

    There's nothing happening in markets today!  While this is consistent with the thoughts in the Day Ahead, it's been perhaps even more uneventful than I thought it would be.

    Volume is absent and ranges are narrow.  MBS are 1 tick better than yesterday's latest levels and 10yr yields are a third of a bp lower.  The yield curve is split evenly between losses in the short end and gains in the long end, which has been the post-Fed theme.

    There are no significant economic reports today and there is nothing new that the several Fed speakers can tell us, because again... there was nothing interesting about the actual FOMC Announcement itself.  We knew qualitative guidance was coming and that it would be open to interpretation.  The only interesting thing a Fed official could say would be to candidly discuss the shift in perceptions on the rate hike, and they're not likely to touch that one with a 0 to .25 foot pole.

    Tradeflows surrounding Treasury Options expiries remain just about the only source of inspiration--not that we've seen any yet.  Apart from that, Ukraine headlines still have some life left in them, but the bar is moving ever higher.  Some of today's offerings should have had more of an impact than they've had.

    Category: MBS, UPDATE
    Share:   
 
No Micro News Posts Here.

Options:
 
MBS Micro News updates are a service provided to MBSonMND subscribers only.
Learn More | Start a Free Trial | Open the Dashboard
  • 3/21/14

    Whereas the morning's gains has as much to do with MBS outperformance as anything, the afternoon has seen forced buying in Treasuries against a low volume backdrop.  The demand was fueled both by the April options expiry as well as corporate bond hedging. 

    Longer dated Treasuries also got a boost at the expense of 3yr and 5yr maturities both because of the ongoing 'flattening' of the yield curve (longer dated yields moving down and shorter-dated yields moving up relative to each other) as well as Fed speaker comments around 2:15pm.

    All told, the gains continue to be extremely limited for MBS with Fannie 4.0s only up 4/32nds (just 1/32nd higher than the last update!), but as we discussed, weakness and volatility in the morning resulted in rate sheets that were perhaps too conservative for a stable afternoon with moderate gains. On top of that, yesterday's rate sheets were generally weaker, despite stronger prices by the end of the day.  As such, reprices have become rather widespread with a few lenders coming back for a second pass.

    Category: MBS, UPDATE
    Share:   
  • 3/21/14

    We're currently seeing a synergistic combination of MBS outperformance (carrying over from yesterday) combined with just moderately positive tradeflows surrounding Treasury options expiries.

    Even then, Fannie 4.0s are up only 3 ticks on the day and 10yr yields are down only 1.4bps--still range-bound overall. 

    The positive reprice potential would be a factor of earlier rate sheets coming out shortly after MBS swung to the lows of the morning.  Even though prices began to bounce back before the rate sheets printed, the first sheets of the day will always take the entirety of morning price action into consideration. 

    The bounce back was "too new" to fully price in with the first sheets.  Hence the Wells reprice a few minutes ago, and the prospect for a few others while these prices hold. 

    Category: MBS, UPDATE
    Share:   
  • 3/21/14

    There's nothing happening in markets today!  While this is consistent with the thoughts in the Day Ahead, it's been perhaps even more uneventful than I thought it would be.

    Volume is absent and ranges are narrow.  MBS are 1 tick better than yesterday's latest levels and 10yr yields are a third of a bp lower.  The yield curve is split evenly between losses in the short end and gains in the long end, which has been the post-Fed theme.

    There are no significant economic reports today and there is nothing new that the several Fed speakers can tell us, because again... there was nothing interesting about the actual FOMC Announcement itself.  We knew qualitative guidance was coming and that it would be open to interpretation.  The only interesting thing a Fed official could say would be to candidly discuss the shift in perceptions on the rate hike, and they're not likely to touch that one with a 0 to .25 foot pole.

    Tradeflows surrounding Treasury Options expiries remain just about the only source of inspiration--not that we've seen any yet.  Apart from that, Ukraine headlines still have some life left in them, but the bar is moving ever higher.  Some of today's offerings should have had more of an impact than they've had.

    Category: MBS, UPDATE
    Share:   
 
No Micro News Posts Here.

Options:
 
 
No Micro News Posts Here.

Options:
 
 
No Micro News Posts Here.

Options:
 
Did you know?
You can see a list of all comments on MND by clicking the 'Read the Latest Comments' option under the 'Community' menu.
 

More From MND

Mortgage Rates:
  • 30 Yr FRM 3.96%
  • |
  • 15 Yr FRM 3.16%
  • |
  • Jumbo 30 Year Fixed 3.81%
MBS Prices:
  • 30YR FNMA 4.5 108-20 (0-03)
  • |
  • 30YR FNMA 5.0 110-27 (0-01)
  • |
  • 30YR FNMA 5.5 111-27 (0-02)
Recent Housing Data:
  • Mortgage Apps 4.93%
  • |
  • Refinance Index 0.90%
  • |
  • FHFA Home Price Index 0.67%