MBS rose boldly into previously unexplored territory today as Fannie
3.0's spent more than just a few moments above 104-00. Additionally,
Fannie 3.5's continue to operate above 106-00, also hitting new
all-time highs today. Almost everything about today's trading is a
by-product of momentum created very early in the European session.
Markets caught a big whiff of "Friday flight-to-safety" after news
that Spain's Valencia region will need government help to repay its
obligations. Shortly thereafter, German Bunds tested 1.20% several
times and finally broker through. That was basically "it," as they
say, with subsequent events simply "not contradicting" the dogpile
into the long end of the yield curve, and details of the Spanish Bank
bailout probably doing the most to help keep the rally going. The ECB
again shunned Greek collateral as the Troika again experiences
difficulties getting on the same page as Greece, and the domestic
corporate earnings calendar was scarcely sufficient to tip the scales
of the risk-off trading.
MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing
is available via MBS Live.
Pricing as of 4:09 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
After Dashing To New All-Time Highs, Liquidity A Concern For MBS Late
Granted, most lender's rates were out at a time this morning when prices were just now edging up to current levels. Since then, they moved about 5 ticks higher and have since moved about 5 ticks lower in the last 2 hours. The most recent dip looks to be met with decent enough support at 103-29, but liquidity does appear to be a concern.
These things happen on Friday afternoons, sometimes leaving buyers but often times sellers (as the Fed usually buys earlier in the day). That's not a prediction about how the balance of the day will trade, merely a justification for the modicum of weakness here. It's not yet looking like a negative reprice situation, but depending on lock volume and "jumpiness," there are other reasons a lender might reprice for the worse.
In assessing the possibility of those "pipeline control" reprices, all you can really do is 'know your lender' and whether or not they have a history of such things. Otherwise, we'd probably keep an eye on 103-29 here as that seems to be where the bid-side will try to draw its line in the sand. if we break lower, the better technical level is actually 103-28, as it represents sort of the middle ground between the morning highs and afternoon lows. If we find ourselves under 103-28, negative reprices would be more of a concern, otherwise, we're just trying to stay on cruise control for the next 2 hours.
Live Chat Featured Comments
Ross Miller : "REPRICE: 2:25 PM - Caliber Funding Better"
Jeff Anderson : "REPRICE: 2:20 PM - Chase Better"
Rob Clark : "REPRICE: 12:41 PM - Provident Funding Better"