Rate sheet influential MBS coupons are 9/32 off their price highs. This may prompt some lenders to reprice for the worse.

Front month/cash delivery FNCL 4.0s are 9/32 off intraday price highs. Back month/January delivery FNCL 4.0s have fallen 8/32 from session highs. This weakness appears to have been prompted by the weak 5-year note auction and a general bond market repricing for the worse.


  • Fed officials sharply revised down their forecasts for economic growth next year, and saw unemployment at significantly higher levels than they had the last time they issued official forecasts in June. 
  • Most participants in the Federal Open Market Committee, the Fed's policy-setting arm, backed the plan to ramp up asset purchases in an effort to bring down long-term interest rates and try to nudge economic activity up a notch.
  • In a rare, unscheduled meeting held via videoconference on Oct. 15, policymakers debated a range of new avenues for policy, including the possibility of targeting a specific level of bond yields and enhancing communications by instituting news briefings by Chairman Ben Bernanke.

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