Register or Sign in        Email This Page     Link To This Page    
Visit MND at MBA in NYC!
33,877
# of User Comments
Micro News Archives
Use the calendar to view Micro News posts from a specific date.
Today  |  Yesterday  |  Random
Bottom Right Default
State Name:
State Name underscore:
State Name dash:
State Name lower underscore:
State Name lower dash:
State Name lower:
State Abbreviation:
State Abbreviation Lower:
You are viewing Micro News from Thursday, Jun 5, 2014 - View all recent Micro News
  • 6/5/14
    Ongoing Positive Reprice Potential

    Long story short, financial markets braced for impact from the ECB (the impact of too many words and not enough action), but the ECB bowled right down the middle of expectations.  European bonds, currency, and US markets have been progressively coming to terms with that this morning, resulting in the best levels of the day for bond markets.

    At a mere 2bps from yesterday in 10yr yields, the rally is far from intense day-over-day, but it's a good move down from earlier volatility.  Peak to trough, yields are down from 2.647 to 2.584.  Fannie 3.5s are up from 101-30 to 101-15--better than half a point trough to peak. 

    Some lenders were generating rate sheets when prices were looking more trough-ish.  They continue to be relatively likely to reprice positively.  The most recent batch of gains even puts other, later-pricing lenders in a position to consider reprices. 

    At current levels, we've ALMOST undone 1 of the past 4 days of bond market weakness.  Pretty anticlimactic, but definitely better than the alternative.  The most promising feature of the current landscape is the potential for 10yr yields to pivot at 2.60.  They'll need break below 2.57 to make it official.

    Category: MBS, UPDATE
    Share:   
  • 6/5/14
    Bond Markets Turn Green After Draghi Stops Talking; Positive Reprice Potential for Some

    Seriously, you can't make this stuff up.  After being in negative territory throughout Draghi's press conference, the moment he stands up, bond markets move into positive territory.

    To summarize,

    • The ECB delivered on markets' highest probability expectations (rate cuts). 
    • They mostly delivered on the strong possibilities (LTROs, but with some extra stipulations beyond the last round. These are basically cheap, short term loans for banks).
    • They threw in a curve ball by postponing so-called 'sterilization' of their past asset purchases.  That means they're taking a break from selling assets that were previously used to offset asset purchases--effectively a back door way to produce some small QE-like effect
    • They held off on announcing new asset purchases but said they're working on it.

    If the ECB had actually announced new asset purchases today,l it would have been a big surprise.  Their decisions were about as middle-of-the-road as they could be, and markets reacted as such. 

    After the initial knee-jerk to weaker levels, bond markets returned to only slightly weaker levels.  Traders remained defensive while Draghi's Q&A was ongoing.  Once a central bank president ends their Q&A, it's akin to locking in the bank's final answer for the day.  Market participants know that what's been said so far is all that will be said for the day, and an uncertainty premium comes out of the market. 

    As such Treasuries and MBS improved, moving into positive territory.  Fannie 3.5s are up 6 ticks at 102-13 and 10yr yields are down a modest 1.3bps at 2.59.  These are VERY anticlimactic trading levels considering the build-up to the events.  That said, some of the earliest-pricing lenders were in the process of generating rate sheets before the bulk of the rally.  They could be considering positive reprices currently.

    Category: MBS, UPDATE
    Share:   
  • 6/5/14
    The longer the morning goes on without ECB President...
    MBS Updates are a service provided to MBS Live! subscribers only.
    Learn More | Start a Free Trial | View MBS Prices
    Category: MBS, alert
    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
  • 6/5/14

    Long story short, financial markets braced for impact from the ECB (the impact of too many words and not enough action), but the ECB bowled right down the middle of expectations.  European bonds, currency, and US markets have been progressively coming to terms with that this morning, resulting in the best levels of the day for bond markets.

    At a mere 2bps from yesterday in 10yr yields, the rally is far from intense day-over-day, but it's a good move down from earlier volatility.  Peak to trough, yields are down from 2.647 to 2.584.  Fannie 3.5s are up from 101-30 to 101-15--better than half a point trough to peak. 

    Some lenders were generating rate sheets when prices were looking more trough-ish.  They continue to be relatively likely to reprice positively.  The most recent batch of gains even puts other, later-pricing lenders in a position to consider reprices. 

    At current levels, we've ALMOST undone 1 of the past 4 days of bond market weakness.  Pretty anticlimactic, but definitely better than the alternative.  The most promising feature of the current landscape is the potential for 10yr yields to pivot at 2.60.  They'll need break below 2.57 to make it official.

    Category: MBS, UPDATE
    Share:   
  • 6/5/14

    Seriously, you can't make this stuff up.  After being in negative territory throughout Draghi's press conference, the moment he stands up, bond markets move into positive territory.

    To summarize,

    • The ECB delivered on markets' highest probability expectations (rate cuts). 
    • They mostly delivered on the strong possibilities (LTROs, but with some extra stipulations beyond the last round. These are basically cheap, short term loans for banks).
    • They threw in a curve ball by postponing so-called 'sterilization' of their past asset purchases.  That means they're taking a break from selling assets that were previously used to offset asset purchases--effectively a back door way to produce some small QE-like effect
    • They held off on announcing new asset purchases but said they're working on it.

    If the ECB had actually announced new asset purchases today,l it would have been a big surprise.  Their decisions were about as middle-of-the-road as they could be, and markets reacted as such. 

    After the initial knee-jerk to weaker levels, bond markets returned to only slightly weaker levels.  Traders remained defensive while Draghi's Q&A was ongoing.  Once a central bank president ends their Q&A, it's akin to locking in the bank's final answer for the day.  Market participants know that what's been said so far is all that will be said for the day, and an uncertainty premium comes out of the market. 

    As such Treasuries and MBS improved, moving into positive territory.  Fannie 3.5s are up 6 ticks at 102-13 and 10yr yields are down a modest 1.3bps at 2.59.  These are VERY anticlimactic trading levels considering the build-up to the events.  That said, some of the earliest-pricing lenders were in the process of generating rate sheets before the bulk of the rally.  They could be considering positive reprices currently.

    Category: MBS, UPDATE
    Share:   
  • 6/5/14
    The longer the morning goes on without ECB President...
    MBS Updates are a service provided to MBS Live! subscribers only.
    Learn More | Start a Free Trial | View MBS Prices
    Category: MBS, alert
    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 4.10%
  • |
  • 15 Yr FRM 3.26%
  • |
  • Jumbo 30 Year Fixed 3.98%
MBS Prices:
  • 30YR FNMA 4.5 107-31 (0-01)
  • |
  • 30YR FNMA 5.0 110-02 (-0-05)
  • |
  • 30YR FNMA 5.5 111-06 (0-00)
Recent Housing Data:
  • Mortgage Apps -2.68%
  • |
  • Refinance Index -3.98%
  • |
  • FHFA Home Price Index 0.67%