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One of the more confusing MBS topics is the concept of "dollar rolls." While it seems esoteric, secondary markets people are implicitly considering the dollar roll market every time they make the judgment to sell one month's settlement over an earlier or later month. A "roll" is a transaction where a...
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Bonds have experienced a sharp backup in rates since the beginning of October. From October 3rd through the close of 10/17, the yield on the 10-year Treasury backed up 40 basis points. The selloff was led by the long end of the curve; the 2-10 spread widened out about 40 basis points, while 5-10s has...
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The House Subcommittee on Capital Markets and Government Sponsored Enterprises took its microphones to New York City on Wednesday for a field hearing on " Facilitating Continued Investor Demand in the U.S. Mortgage Market without a Government Guarantee ." The representatives heard testimony from four...
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Seventeen banks, dozens of their subsidiaries and over one hundred bank officers were named as defendants in a lawsuit filed Friday by the Federal Housing Finance Agency (FHFA), conservator of government sponsored enterprises Freddie Mac and Fannie Mae (The GSEs.) The civil suits, filed in U.S. District...
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The Senate subcommittee on Capital Markets and Government Sponsored Enterprises will hold a hearing next Wednesday at 10 a.m. to examine ways in which the government can help create sufficient investor demand for private label residential mortgage-backed securities . The hearing will also focus on ensuring...
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While day trading occupied the minds of fixed income market participants yesterday, prices of mortgage backed securities managed to tick higher, despite considerable gains in stocks. Rates moved higher in the opening hours of the session, however as losses were recovered later in the day, several lenders...
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Last week ended basically where it began with prices of mortgage backed securities moving sideways near record highs and mortgage rates holding steady near six month lows. MBS traded in a very narrowing range as the week progressed which allowed lenders to publish base 30 year conventional mortgage rates...
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Following a somewhat disappointing 30 year bond auction yesterday, prices of mortgage backed securities plummeted and mortgage rates moved higher as lenders repriced for the worse. The economic calendar, like the previous four days of the week, is light today with only one report being released, International...
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Mortgage rates took another step higher yesterday following a 3% rally in the stock market. Tame inflation and “not as bad” industrial production numbers have resparked the green shoots theory of a quick economic recovery. Market participants, not wanting to miss out on the rally, quickly...
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Last week, progress was made in the mortgage market as Treasuries rallied and prices of mortgage backed securities moved higher. By week's end "rate sheet influential" MBS coupons improved in price by almost 0.50 discount points, bringing the par 30 year fixed rate mortgage back under 5...
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After making little to no ground during the holiday shortened work week, mortgage backed securities are still in search of clear direction. Last week MBS closed at the same level at which they opened on Monday, even a very poor Employment Situation report was unable to increase demand for "rate...
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Mortgage rates moved considerably higher following another sell off in the mortgage-backed securities market yesterday. Since Monday, current coupon MBS prices have moved 200 basis points lower, consequently pushing the par 30 year fixed mortgage rate from 4.875% to 5.375% (in one week!!!). Prior to...
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Yesterday mortgage-backed securities had their least volatile day since last week's " Black Wednesday " event. MBS traded in a tight range most of the session, closing slightly higher than the previous day's "going out" marks. With all the volatility recently, I have to say...
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FN30 _______________________________ FN 4.0 -------->>>> -0-04 to 100-14 from 100-18 FN 4.5 -------->>>> -0-03 to 102-02 from 102-05 FN 5.0 -------->>>> - 0-02 to 103-04 from 103-06 FN 5.5 -------->>>> -0-01 to 103-24 from 103-25 FN 6.0 -------->>>>...
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New York Fed purchases $33 billion net ($47 billion gross) in agency mortgage-backed securities.