MBS Live: MBS RECAP
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FNMA 3.5
103-22 : -0-05
FNMA 4.0
105-13 : -0-08
FNMA 4.5
106-19 : -0-07
FNMA 5.0
107-30 : -0-04
GNMA 3.5
105-02 : -0-06
GNMA 4.0
107-24 : -0-07
GNMA 4.5
109-03 : -0-06
GNMA 5.0
110-28 : -0-04
FHLMC 3.5
103-13 : -0-06
FHLMC 4.0
105-00 : -0-07
FHLMC 4.5
106-03 : -0-06
FHLMC 5.0
107-27 : +0-02
Pricing as of 4:02 PM EST
Afternoon Market Updates
A recap of MBS Market Updates provided by MND Analysts and streamed live to the MBS Live Dashboard.
2:06PM  :  ALERT: Treasuries, MBS Attempting to Turn a Corner Following 30yr Auction
Volume surged briefly following the 1pm 30yr Bond Auction, but has since died down. In the process, Treasury yields and MBS prices experienced a bit of volatility, but that now seems to be resolving itself in a favorable manner. Fannie 3.5 MBS are down only 4 ticks on the day at 103-23, and 10yr yields are down to 2.045 after being as high as the 2.07's before the auction.

New and meaningful headlines out of Europe have slowed to a trickle and there are no other major decisions or announcements scheduled to be made today. Several officials are on record as saying that the Greek bailout agreement is a done deal but other officials note that nothing official will be announced today.

Whether it's some hesitation on that news or simple technical exhaustion after selling off nearly 30 bps in February, 10yr yields look as if they'll record a closing mark under or very close to long term support for their trend channel which passes through 2.56 today.

MBS charts are starting to look fairly decent considering the morning weakness, with a nice double bounce off 103-18. If prices were to continue to operate at current levels, a few lenders might soon consider a positive reprice, but the morning volatility means there could be more hesitation than normal. We also tend to see fewer reprices during the MBS settlement cycle, and today is "48 hour day" and March coupons will be front-month after the close tonight.
11:39AM  :  ALERT: MBS, Treasuries Bounce At February's Weakest Levels
Although it's still too soon to plan on current support levels continue to hold up through the day, MBS have done a decent job of holding the line at February's lows this morning. From the 3rd through the 8th of the month, Fannie 3.5's ground incessantly against 103-18 and have bounced there again this morning. 10yr yields are much higher than their highest February levels and are trying to establish some support at high yields from earlier this morning just under 2.06.

The fates of Fannie 3.5's with respect to 103-18 seem tied to this 2.06 mark in Treasuries for now, but given the recent volatility in spreads, a linear relationship between the two is not guaranteed, especially with roll-related liquidity considerations.

Several European finance ministers have come out saying that there won't be any results from the Eurogroup meeting today, something that Greece's PM indicated as goal in extending last night's meeting. That could be partially fueling current bounce attempts for bond markets, but technical factors could certainly be in play as the sell off takes 10yr yields to very long-term trend channel support. Markets may also be interested to see how today's 30yr bond auction goes as well as any other enlightening headlines out of Greece.

After bouncing at 103-18, Fannie 3.5's are currently back to 103-22 while 10yr yields are down to 2.0399 after nearly touching 2.06. Despite the bounce, we did see one report of a reprice for the worse, but that was from a lender that tends to price earlier in the morning than most. The majority of lenders priced late enough in the morning that MBS had already experienced most of their losses. Thus, we don't think additional reprices for the worse are too terribly likely unless prices turn around and start falling again. It could happen, but at the moment, is not warranted by the price action.
Featured Market Discussion
A recap of the featured comments from the Live Discussion on the MBS Live Dashboard.
Matt Hodges  :  "DU doesn't allow"
Matt Hodges  :  "yes"
Christopher Max  :  "LP Question--I have a non-occupant co-borrower on the loan for qualification purposes. I have done plenty of these for FHA but never COnventional. Are we allowed to count the residence as a primary residence just like FHA?"
Chris Kopec  :  "I agree AH.....personally, I think HVCC pretty much shot the non-APR nature of appraisals in the can. But now, I'm getting an after-disclosure additional charge that I need to reconcile with my client. Beyond the principle of the thing, I now have an underdisclosed GFE."
Andrew Horowitz  :  "that seems felonious charge in my book Owl"
Michael Tadros  :  "REPRICE: 2:10 PM - Provident Funding Better"
Frank Ceizyk  :  "One investor - One decision... We are not the broker we are the lender. We currently have 30MM in "Private Money" available for the following: * Non Owner SFR * Non Owner Rehab * Apt Buildings * All Types of Commercial * * California Properties ONLY PLEASE "
Frank Ceizyk  :  "from flyer I got emailed last summer: To Qualify: * LTV no more than 60% 1st TDS only * Stated Income - No Problem * Credit - Not An Issue * California Properties ONLY PLEASE "
Frank Ceizyk  :  "commercial stated started appearing year and a half ago..."
Chris Kopec  :  "Has anyone seen an AMC charge to tranfer an apprasial? I just got word that one of the AMCs would be chargin $150 in order to transfer an appraisal to another lender. That seems to be a very questionable practice, in my opinion."
Jason Wilborn  :  "read an article 3 months ago that sub-prime was making a comeback and investor groups were creating entities with an appetite to buy and sell the paper"
Brent Borcherding  :  "1-0 MG vs Santelli"
Matthew Graham  :  "post auction trading looking more like a B and less like a C-"
Matthew Graham  :  "which is much higher"
Matthew Graham  :  "yeah, he's probably looking at overal BTC average"
Victor Burek  :  "santelli gave it an c-"
Matthew Graham  :  "small tail as far as 30yr auction tails go and higher than average BTC for refundings"
Chris Kopec  :  "Maybe a little post-auction bounceback is now in store?"
Matthew Graham  :  "another "B""
Matthew Graham  :  "RTRS- U.S. 30-year bond BID-TO-COVER RATIO 2.47, NON-COMP BIDS $36.50 MLN"
Matthew Graham  :  "RTRS- U.S. SELLS $16 BLN 30-YEAR BONDS AT HIGH YIELD 3.240 PCT, AWARDS 98.13 PCT OF BIDS AT HIGH"
Matthew Graham  :  "been on the upswing Ira"
Ira Selwin  :  "MG how is volume in the 4's?"
Victor Burek  :  "lets hope the auction can turn things around for us"
Matt Sullivan  :  "more comments about the mortgage settlement...yawn"
Matt Sullivan  :  "here comes Obama"
Chris Kopec  :  "Just some minor details remain....like how Greece will repay its debts.....otherwise, it's all goo."
Brent Borcherding  :  "MBS looking very resilient. "
Victor Burek  :  "German FinMin: Greek deal on spending cuts appears to not yet fulfill bailout conditions "
Andrew Horowitz  :  "According to Greek broadcaster ANA, the Deputy Labor Minister has resigned over the austerity deal. He's a member of the ruling coalition, specifically the PASOK party. Read more: http://www.businessinsider.com/deal-or-no-deal-some-troubling-news-about-the-state-of-the-greek-bailout-2012-2#ixzz1lu8HbVKg "
Brent Borcherding  :  " Bove On The Foreclosure Settlement: There Is No Sanctity Of Contracts; Only Fools Meet Their Financial Commitments "
Brent Borcherding  :  "Great tagline...this mentality is picking up steam globally:"
Matthew Graham  :  "assuming we keep falling. if we don't keep falling, 103-11 is already an established pivot (as you can see in the chart that I linked or in the advanced charts). So if we're holding steady or improving, 103-11. Other pivots from there have been 103-06 and 103-02. And yes, certainly plenty of activity around 102-26 previously, but that assumes that the MBS are done trending, and we wouldn't be able to confirm that with the current move"