The FN 4.0 is currently +0-10 at 98-14 yielding 4.162% and the FN 4.5 is trading +0-07 at 101-00 yielding 4.379%. The secondary market current coupon is 4.303%.
As MG pointed out in MBS MORNING, rate sheet influential MBS coupons are being outperformed by benchmark big brothers today. The FN 4.5 is currently +105bps over the 10yr TSY and +88bps over the 10yr swap. (Those are yield spreads. The + denotes how many basis points the FN 4.5 is trading above a benchmark yield. )
Below is the FN 4.5 two day. The range trade is once again obvious... add positions into weakness, sell into strength. AKA buy low, sell high aka DAY TRADE. Heading into 3pm marks, the FN 4.5 is holding near the high side of the price range thanks to a relatively stable session in the basis. The basis = benchmarks.
Very originator friendly trend channel...
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