MBS and Treasuries Holding Narrow Ranges at Best Levels
Today continues to be wholly uneventful for bond markets. After beginning the domestic session just barely inside yesterday's weakest levels, both MBS and Treasuries have simply been drifting sideways and slightly higher in price (lower in yield).
To reinforce the notion that this is uneventful, MBS still haven't broken into positive territory with Fannie 4.0s down 1 tick on the day at 104-15. 10yr yields are just about 1bp higher than yesterday at 2.6373.
That said, MBS are an eight of a point higher from the time of day that some lenders released their first rate sheets. As such, positive reprices are an outside possibility for a few of those lenders, but an eighth of a point is really only the threshold beyond which reprices become possible.
It would take a bit more positivity to make them 'probable' outside the one or two lenders that reprice most aggressively. Additionally, as of right now, we haven't moved past that threshold. Uneventful...