Standing as the starting point for a week that promises a chance volatility and big moves, today was
remarkably calm and methodical. That's no major surprise given the utter lack of data and events to
inform trading, but the extent of the bounce back into Friday AM territory is a welcome development
for MBS. Fannie 3.5's are coasting out at 103-29 here in the final hour, actually 1 tick higher than
they're best levels Friday morning. Treasuries, on the other hand, haven't made it back to the 1.46's
of Friday morning, but have at least crossed back into the 1.49s after a light and methodical day of
lower yields. Today was "it" as far as calm days this week, but tomorrow won't yet be as intense as
the final three days of the week that contain FOMC, ECB, and NFP respectively.
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 4:05 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
Edging Into Positive Reprice Territory As MBS Hit Friday AM Levels
Fannie 3.5s just regained a 106 handle and Fannie 3.0s are back up to Friday's highs at 103-28 as a relatively quiet trading day continues to unfold. The 11am hour marked another push into better territory for bond markets with 10-11am ostensibly getting a lift from scheduled Fed buying as well at as an equities market stall around 10:30am.
10yr yields are down just over 3bps on the day at 1.5121 and S&Ps are at their lowest levels since Friday's Draghi tape-bomb just before 1:30pm.
With Fanni 3.0's up more than 8 ticks since 10am, it's starting to seem like a more and more reasonable assumption that we'd see a positive reprice, though we'd expect a higher-than-normal amount of hesitation given the lingering "hurt-feelings" from Friday's abrupt changes as well as big-ticket items on the calendar in the rest of the week, not to mention any month-end balance sheet considerations.
Live Chat Featured Comments
Gus Floropoulos : "REPRICE: 2:42 PM - PHH Better"
Jason York : "REPRICE: 1:32 PM - Plaza Better"
Victor Burek : "REPRICE: 1:25 PM - Nexbank Better"
Victor Burek : "i never doubted we woudl get the losses back from friday"
Chris Kopec : "From 103-08 to 130-29 in a day.....holy roller coaster, Batman."
Eric Franson : "REPRICE: 12:47 PM - Wells Fargo Better"
Rob Clark : "REPRICE: 12:47 PM - Provident Funding Better"
Christopher Stevens : "MG you read my mind"
Christopher Stevens : "about time for a reprice isnt it"
Andy Pada : "And there is the 106"
Matthew Graham : "Wed, Thurs, Fri are the high potential volatility days."
Matthew Graham : "I'd float indefinitely into the afternoon, reassess considering time-frames, probably lock any within 15 days, lean toward floating those over 15 days into tomorrow, but depends on overall state of the pipeline and client preferences. I'd generally be feeling more locky today, then again, I probably would have locked a lot on Friday before the reprices."
EB : "MG, in your professional opinion, would you lock today or float towards end of the week?"
Matthew Graham : "I think you had some of the latter on Friday and a bit of caution about it today, but with Thursday being the definitive answer. Even if the ECB does more than expected, it still won't be "everything fixed" though. Just triage."
Brett Boyke : "had kind of a rough weekend and lost track of where we are at - is today an everything in EU fixed or EU is unfixable day?"