Afternoon Market Updates
A recap of MBS Market Updates provided by MND Analysts and streamed live to the MBS Live Dashboard
Stunning 7-Yr Treasury Auction Sends MBS Higher
Today's 7 yr auction was incredibly strong and has incited a big volume move down under 2% in 10yr notes. MBS are following the positivity for the most part, but the current glory is going to the the Treasury complex considering this is their victory.
MBS are currently a tick higher than their previous highs of the day, up 3 ticks at 103-14. 10yr yields moved to 1.99 and saw their first resistance bounce there, currently at 1.995.
The auction's high yield was an impressive 2.6 bps lower than the 1pm When-Issued yield and the cover was an equally impressive 3.11 versus recent averages around 2.8.
Too soon for positive reprices, but they might not be too far away if current levels hold or are improved upon.
Featured Market Discussion
Michael Tadros : "REPRICE: 3:34 PM - Wells Fargo Better"
Tom Schwab : "REPRICE: 3:31 PM - Flagstar Better"
Gus Floropoulos : "REPRICE: 3:09 PM - PHH Better"
Jason Zimmer : "REPRICE: 2:43 PM - Fifth Third Mortgage Better"
Jason York : "REPRICE: 2:34 PM - Chase Better"
Steven Bote : "REPRICE: 2:17 PM - Sierra Pacific Better"
Tom Schwab : "REPRICE: 2:14 PM - AMC Better"
Chris Kopec : "Pass this must-read on Frank-Dodd along to your clients.... http://www.economist.com/node/21547784"
Kent Mikkola #353976 : "REPRICE: 1:54 PM - Provident Funding Better"
Michael Tadros : "REPRICE: 1:28 PM - Interbank Better"
Michael Kelleher : "love this website, especially when the news is good"
Victor Burek : "santelli said if this auction was a bo derek movie it would be called 11!"
Oliver S. Orlicki : "very nice:)"
Chris Kopec : "HULK SMASH!"
Jeff Anderson : "Shazaam!"
Michael Kelleher : "nice!"
Matthew Graham : "A+"
Matthew Graham : "RTRS - US TREASURY - PRIMARY DEALERS TAKE $11.27 BLN OF 7-YEAR NOTES SALE, INDIRECT $12.13 BLN"
Victor Burek : "wow"
Matthew Graham : "RTRS- U.S. 7-YEAR NOTES BID-TO-COVER RATIO 3.11, NON-COMP BIDS $19.77 MLN "
Matthew Graham : "RTRS - U.S. SELLS $29 BLN 7-YEAR NOTES AT HIGH YIELD 1.418 PCT, AWARDS 31.54 PCT OF BIDS AT HIGH "
Matthew Graham : "anything lower than 1.45, really, would beat recent averages. avg BTC's have been around 2.8"
Matthew Graham : "7yr WI at 1.444"
Chip Harris : "Excellent! Thanks MH. That shows up on the fees worksheet just perfectly as well!"