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Benchmark Treasury prices and mortgage-backed security prices rallied yesterday. AQ described the inner dynamics of the trade strategy that led to rate improvements READ MORE . In terms of the headline news catalyst for the rally in bond markets, some fixed income friendly verbiage from Federal Reserve...
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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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Levels in the capital markets appeared to have stabilized over the past few months. Treasury yields have remained in a fairly tight range, as have yield spreads for mortgage-backed securities. In particular, MBS yield spreads have remained quite stable since mid-June. The spread of the Fannie Mae current...
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Yo. Happy Friday People. All summer we have been preaching that markets have paid no attention to fundamentals. We've been relentlessly relaying that ITS A TRADERS WORLD...technical trading strategies dominate...range bound...waiting for guidance...wait and see....day traders paradise. These are...
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Good Morning All. Wake Up West Coast! The Fed didnt offer up much new guidance yesterday. Actually I dont want to say they totally crapped the bed.... they did draw out the end of the TSY purchase program....which turned out to be a net plus for MBS. Overall it was a STATUS QUO statement though. Unfortunately...
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Happy Notification Day. We hope you've been around long enough to avoid this joke. If you havent...this chart will probably scare you... BOO!!! OH NO MORTGAGE RATES ARE GOING THROUGH THE ROOF!!! HAHA LMAO.... Im messing with you. Its notification day. Do not fret! _______________________________________________________________________...
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It has been yet another slow summer morning so far. Profit taking in stocks carried over from Friday into this morning's session, however equity indices are bouncing off their morning lows, making their way back to flat on the day... The selling sentiment in stocks and oversold nature of TSYs (white...
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The Federal Reserve took a break from buying today. Servicers and Originators sold over $4bn "rate sheet influential" MBS today, $2bn of which was mopped up by the Fed, less than their recent average. Servicer selling signals a feeling of exhaustion in the MBS market place as servicers generally...
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Good Morning. MBS market volume is running at above average levels so far this morning. Originators are modest sellers...nothing to write home about though. Other than that, fast money hedge funds continue to exit positions in "rate sheet influential" MBS as rich price valuations keep OAS levels...
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Early in the session stocks showed signs of weakness, giving TSY and "rate sheet influential" MBS coupons an opportunity to rally to the highs of the day. Unfortunately, as stocks began to meander off intraday lows, the long end of the yield curve started selling off..eventually selling pressure...
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The dust is still settling but stocks are showing some skittishness ahead of pending labor market data (jobless claims and NFP). This morning we saw side equity-siders taking profits, pushing the S&P below 1,000...following the push below 1,000 short covering pushed the index higher. If you have...
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As originators scramble with last minute closings(not so much with new TIL) and loan shippers prepare files for purchase, there has been an end of month hustle and bustle about the MBS market this morning. Servicers are buying "down in coupon" (buying convexity) while the Federal Reserve eats...
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We've spent a fair amount of time discussing the factors moving money in markets recently. Most of which have been centered around technical trading strategies and risk aversion allocations (speculative). After bouncing off of key support levels (technical and psychological), the S&P rallied...
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Good Morning... The S&P is showing further signs that traders are unwilling to accept higher stock prices. Since most readers are looking for a logical reason behind why stocks are failing to rally following much better than expected HOUSING DATA ...its because the housing data many absorbed was...
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Are stocks done rallying (for now)? Overnight, S&P Futures made an attempt to move higher...but gains were unsustainable. After moving lower, futures spiked following a better than expected New Home Sales print ( READ MORE ), however the initial reaction failed to hold and prices moved lower...new...