Register or Sign in        Email This Page     Link To This Page    
Visit MND at MBA in NYC!
1,270
# of Questions
Micro News Archives
Use the calendar to view Micro News posts from a specific date.
Today  |  Yesterday  |  Random
Bottom Right Default
State Name: Washington
State Name underscore: Washington
State Name dash: Washington
State Name lower underscore: washington
State Name lower dash: washington
State Name lower: washington
State Abbreviation: WA
State Abbreviation Lower: wa
You are viewing Micro News from Tuesday, May 13, 2014 - View all recent Micro News
  • 5/13/14
    Well Off Highs Now, Mostly Holding Gains

    After running to the best levels of the day earlier this afternoon, MBS have gradually fallen back to the middle of this morning's post-data range.  Even the lowest prices in that range represent a solid improvement from yesterday, and the middle ground is probably good enough to avoid any negative reprice risk. 

    That said, the fact that we're an eight of a point off the highs also probably lessens the prospects for positive reprices.  Fannie 3.5s are stable at 101-27+ at the moment, down from brief highs of 101-31. 

    Some of this weakness is an adjustment in relative performance vs Treasuries as the pull-back there is less pronounced.  10yr yields are only up to 2.616 from 2.611 lows.

    Category: MBS, UPDATE
    Share:   
  • 5/13/14
    Inching Toward New Highs; Positive Reprice Potential

    MBS have been outperforming Treasuries only modestly but that's enough to bring Fannie 3.5s back within a tick of their session highs at 101-31.  This is 3-4 ticks higher than some lenders' rate sheet print times this morning which puts us right on the edge of positive reprice potential.

    The day's key market-moving consideration remains the weaker Retail Sales data, with none of the other data getting in the way.  FHFA Director Mel Watt spoke earlier, highlights include:

    • Will not reduce loan limits
    • Relaxing buy-back requirements for faulty loans
    • GSEs launching pilot program in Detroit for loan modifications
    • GSEs no longer required to reduce support for multi-family lending
    • FHFA no longer pushing GSEs to reduce market presence in order to preserve liquidity
    • FHFA still likes the idea of "risk transfers" though... wants GSEs to step that up from $30bln to $90bln
    • FHFA also still wants GSEs to keep reducing "retained portfolio."

    In other words, common sense is prevailing to a certain extent as Director Watt acknowledges the liquidity function served by the GSEs.  Full steam ahead for the business of guaranteeing repayment (which is the GSEs most vital function).  And a continued contraction of the activities that arguably overextended the GSEs industry footprint, such as actually owning loans and the associated credit risk.

    For all of the seemingly significant news, MBS haven't reacted much in terms of spreads vs Treasuries.

    Category: MBS, UPDATE
    Share:   
  • 5/13/14
    Bond Markets Stronger After Retail Sales, German Central Bank News

    Treasuries began their overnight trading adventures in very non-adventurous form.  10yr yields moved sideways through Asian trading hours and didn't budge until news that the German central bank (Bundesbank or "BUBA") is open to significant stimulus crossed the wires.  This synergizes with last week's assertion from Mario Draghi that the European Central Bank will be taking new, stimulative action at the next meeting.

    Treasuries improved with German Bunds (10yr German government debt--a benchmark for "EU bond markets"), but Bunds got most of the benefit.  The tables turned after this morning's Retail Sales data came out much worse than expected.  Here's a run-down:

    • Retail Sales (April) +0.1 vs +0.4 forecast
    • March revised up to +1.5 from +1.2
    • Excluding Autos 0.0 vs +0.6 forecast
    • March revised up to +1.0 from +0.7
    • Excluding Autos/Gasoline -0.1 vs +1.4 in March

    Retail Sales data has been an on-again off-again market mover recently, but this is a big enough deviation from the consensus to provide some clear guidance.  After hitting the domestic session fairly close to unchanged, Treasuries and MBS improved significantly.

    10yr yields dropped from 2.66 to 2.63 and Fannie 3.5s rose 6/32nds to 101-25.

    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
  • 5/13/14

    After running to the best levels of the day earlier this afternoon, MBS have gradually fallen back to the middle of this morning's post-data range.  Even the lowest prices in that range represent a solid improvement from yesterday, and the middle ground is probably good enough to avoid any negative reprice risk. 

    That said, the fact that we're an eight of a point off the highs also probably lessens the prospects for positive reprices.  Fannie 3.5s are stable at 101-27+ at the moment, down from brief highs of 101-31. 

    Some of this weakness is an adjustment in relative performance vs Treasuries as the pull-back there is less pronounced.  10yr yields are only up to 2.616 from 2.611 lows.

    Category: MBS, UPDATE
    Share:   
  • 5/13/14

    MBS have been outperforming Treasuries only modestly but that's enough to bring Fannie 3.5s back within a tick of their session highs at 101-31.  This is 3-4 ticks higher than some lenders' rate sheet print times this morning which puts us right on the edge of positive reprice potential.

    The day's key market-moving consideration remains the weaker Retail Sales data, with none of the other data getting in the way.  FHFA Director Mel Watt spoke earlier, highlights include:

    • Will not reduce loan limits
    • Relaxing buy-back requirements for faulty loans
    • GSEs launching pilot program in Detroit for loan modifications
    • GSEs no longer required to reduce support for multi-family lending
    • FHFA no longer pushing GSEs to reduce market presence in order to preserve liquidity
    • FHFA still likes the idea of "risk transfers" though... wants GSEs to step that up from $30bln to $90bln
    • FHFA also still wants GSEs to keep reducing "retained portfolio."

    In other words, common sense is prevailing to a certain extent as Director Watt acknowledges the liquidity function served by the GSEs.  Full steam ahead for the business of guaranteeing repayment (which is the GSEs most vital function).  And a continued contraction of the activities that arguably overextended the GSEs industry footprint, such as actually owning loans and the associated credit risk.

    For all of the seemingly significant news, MBS haven't reacted much in terms of spreads vs Treasuries.

    Category: MBS, UPDATE
    Share:   
  • 5/13/14

    Treasuries began their overnight trading adventures in very non-adventurous form.  10yr yields moved sideways through Asian trading hours and didn't budge until news that the German central bank (Bundesbank or "BUBA") is open to significant stimulus crossed the wires.  This synergizes with last week's assertion from Mario Draghi that the European Central Bank will be taking new, stimulative action at the next meeting.

    Treasuries improved with German Bunds (10yr German government debt--a benchmark for "EU bond markets"), but Bunds got most of the benefit.  The tables turned after this morning's Retail Sales data came out much worse than expected.  Here's a run-down:

    • Retail Sales (April) +0.1 vs +0.4 forecast
    • March revised up to +1.5 from +1.2
    • Excluding Autos 0.0 vs +0.6 forecast
    • March revised up to +1.0 from +0.7
    • Excluding Autos/Gasoline -0.1 vs +1.4 in March

    Retail Sales data has been an on-again off-again market mover recently, but this is a big enough deviation from the consensus to provide some clear guidance.  After hitting the domestic session fairly close to unchanged, Treasuries and MBS improved significantly.

    10yr yields dropped from 2.66 to 2.63 and Fannie 3.5s rose 6/32nds to 101-25.

    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 4.18%
  • |
  • 15 Yr FRM 3.31%
  • |
  • Jumbo 30 Year Fixed 4.06%
MBS Prices:
  • 30YR FNMA 4.5 107-27 (-0-01)
  • |
  • 30YR FNMA 5.0 110-08 (-0-01)
  • |
  • 30YR FNMA 5.5 111-04 (-0-00)
Recent Housing Data:
  • Mortgage Apps -2.68%
  • |
  • Refinance Index -3.98%
  • |
  • FHFA Home Price Index 0.67%