MBS Live: MBS Afternoon Market Summary
MBS have really put on an impressive display of 'ground-holding' in that they've maintained Fannie 3.0 prices in the 103-20's since Monday.  That same day began a very gradual trend weaker for 10yr Treasuries after hitting 1.442.  In other words, from Monday to today, 10's have moved over 5bps higher while MBS have essentially held steady.  It's not that MBS haven't followed the ebbs and flows of the broader bond markets, just that they've been generally slower to fall and more willing than usual to keep pace with gains.
MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
FNMA 3.5
105-30 : +0-01
FNMA 4.0
107-05 : +0-02
FNMA 4.5
108-03 : +0-01
FNMA 5.0
108-26 : +0-02
GNMA 3.5
108-13 : +0-03
GNMA 4.0
109-30 : +0-02
GNMA 4.5
109-27 : +0-03
GNMA 5.0
110-20 : +0-02
FHLMC 3.5
105-24 : +0-01
FHLMC 4.0
106-28 : +0-02
FHLMC 4.5
107-17 : +0-01
FHLMC 5.0
108-07 : +0-01
Pricing as of 4:04 PM EST
Afternoon Reprice Alerts and Updates
Below is a recap of instant Reprice Alerts and updates issued via email and text alert to MBS Live subscribers this afternoon.

1:29PM  :  ALERT ISSUED: TIPS Auction Keeps The Pressure On 10's. MBS Try To Hold On
MBS's determination to tighten up vs Treasuries (aka: keep yields flat while Treasury yields rise = tighter) now borders on impressive. 10's just shot up a quick 1.5bps on a lackluster 10yr TIPS auction of all things. These rarely move markets as they rarely come in at higher-than-expected yields, but this one did. Additionally, demand was a bit weaker than normal and a big 10yr Futures trade went through a few minutes before the auction results, assumed to be a seller.

Taken together, 10's shot up to just under 1.52 and currently trade at 1.5145. MBS have certainly ebbed from their highs of the day, down to 103-21 from 103-24 highs, but are still in the green. At this point, we'd stay fairly closely tuned to how MBS move for the rest of the day as we assume they'll only tolerate so much weakness from benchmarks before buckling under the pressure to some extent. Additionally, we always worry about afternoon liquidity considerations. If those combine with more Treasury selling, we could still things turn red this afternoon. If TSYs hold their ground at the current 1.52-ish ceiling, we might squeak by in the green.
12:40PM  :  Stocks, Euro, Treasury Yields All Higher As MBS Fight The Good FIght
Hurray for MBS! At least for now... The "little engine that could" remains several ticks improved on the day despite Treasuries getting pulled back into the red from advancing stocks and a higher Euro.

There's little to report outside the recent news that Germany's lower house of parliament approved the Spanish bank bailout. There was no big reaction, but risk markets did begin a small trek higher around the same time, led by the euro. Light volumes in Treasuries have allowed them to be easily pushed around this afternoon, though 10's are still well-off their earlier highs (1.5026 currently vs 1.5213 highs).

Fannie 3.0's are 3 ticks in the green at 103-22 and 3.5's are 2 ticks higher at 105-31+. If Treasuries continue to weaken, we could see MBS pay a bit more attention to the yield curve, but they seem to be comfortably tighter for now.
Live Chat Featured Comments
A recap of the featured comments from the MBS Live Dashboard's Live Chat feature, utilized by hundreds of industry professionals each day.

LSP  :  "REPRICE: 2:02 PM - Chase Better"
Jason Wilborn  :  "bad policy in EU for sure"
Matt Hodges  :  "why "bad policy"?"
Adam Quinones  :  "never thought we'd let rates get this low...."
Adam Quinones  :  "that is correct BC"
B-C  :  "Aq you once didnt believe in the 3.0 coupon, correct?"
Adam Quinones  :  "i cant decide to build in or not."
Adam Quinones  :  "im debating the same question right now."
Adam Quinones  :  "negative."
Jason Wilborn  :  "we're going to need it soon"
Jason Wilborn  :  "any luck on posting the 2.5 coupon?"
Jason Wilborn  :  "tick tock tick tock - just a matter of time now"
Jason Wilborn  :  "http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100018882/imf-loses-all-faith-in-the-euro-project/"
Jason Wilborn  :  "here is one of the most succint articles I have read about the EU crisis"
Jason Harris  :  "would anyone expect a problem with an appliance credit on a VA deal as long as it is under 4%...maybe even ave a check cut to Lowes on the HUD?"
Curt Sandfort  :  "self employed client wants to do a refi on his primary, everything normal except for the fact that his company that he is sole owner of, is in the middle of CH11. It's not a personal bk, so how should I have him answer the declarations on the 1003?"
Matthew Graham  :  "Big 10yr futures block trade at 12:57 as well. Interesting."
Matthew Graham  :  "10yr reeling from TIPS auction off all things... "
Steve Chizmadia  :  "Thanks Grant, Michael and Clayton. Appreciated. I thought it wouldn't be an issue. "
Clayton Sandy  :  "I've done that too. As long as their name is on there. you'll be fine. "
Michael Gannon  :  "i would think so"
Grant R. Menard  :  "I have in the past Steve."
Steve Chizmadia  :  "If I have a custodian account that was created by parents for a child, but the parents are named as secondary account holders, can I use those funds for reserves with a joint access letter?"
Michael Gannon  :  "US bank pricing for BE is strong....."
Ira Selwin  :  "AR - chase & phh ?"
Scott Valins  :  "US Bank non-agency is all we use"
Andrew Russell  :  "do you have a preference for FHA Ira? A few places? I assume Wells and Franklin, anyone else for NY?"
Ira Selwin  :  "We don't - we use them to broker HELOCs to"
Michael Gannon  :  "Ira do you guys deal with US Bank?"
Ira Selwin  :  "they dont do business in NY anymore though"
Ira Selwin  :  "AR they do go down to 560"
B-C  :  "they go down to 580 AR"
Andrew Russell  :  "Pacific Union just emailed me they have no FHA overlays on corresp. down to a 620, waiting to see pricing"
B-C  :  "no Plaza"
Michael Gannon  :  "BC did you say you see US Bank paying 108?"
Michael Gannon  :  "yes"
Andrew Russell  :  "and only in NY, right?"
Michael Gannon  :  "on a correspondent level they did in february"
Scott Valins  :  "im about to submit a 2 unit to them"
Scott Valins  :  "MG when did US stop multis"

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