MBS kicked off the day in line with yesterday's highs and soon moved into even better territory. Overnight trading was light, but decidedly positive for bond markets and the "risk-off" trade. Case in point, S&P futures swung almost 30 points peak to trough from yesterday at 5pm to this morning's lows just after 10:30am. MBS traded a medium-sized range from 104-16 to 104-26 but spent most of the time hovering between 104-19 and 104-23. 10yr yields dropped in concert with the brunt of the stock sell-off and hovered around 1.76 through the end of the session.
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 4:03 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
Sideways Grind Continues Near Recent Highs
Fannie 3.0s are up nearly three eighths of a point (10 ticks) at 104-24 at the moment as broader bond markets continue a somewhat choppy bounce back from the weakest levels of the month last week. This isn't appreciably higher than the 104-22 highs during rate sheet release times this morning, but it's not out of the realm of possibility to see a "stability reprice," and also near the best levels since the middle of last week.
Bond markets have generally been following the broader undercurrent of "risk-on vs risk-off" recently, as they've had little new information to inform trading levels. Stocks have plenty and are down big today. S&P futures currently trade at 1408 after hitting 1433 late last night.
br/>Despite the positivity for bond markets so far today, 10yr yields look to have bottomed out most meaningfully with the biggest bout of stock selling heading into 10:30am. We've been grinding extremely sideways wince then and would likely need to see a meaningful stock sell-off in order to retest those lower yields.
All of the above probably keeps a lid on Fannie 3.0 MBS at 104-26, which would need to broken in order to see widespread positive reprices. Still... We might see a few, but the overall theme is sideways and contained as we head into the close. As always, late day illiquidity can cause things to deteriorate into the afternoon, so with the firm bounce off the best levels earlier, we'd keep our guard up for afternoon weakness.
Live Chat Featured Comments
Victor Burek : "not now..wait til after auction"
Mike Drews : "i never regret locking"
Gus Floropoulos : "lock it up"
Victor Burek : "with today's improvement, hard not to lock some of the pipeline"
teree johnson : "quandary: to lock ... Or to float?"
Victor Burek : "no presser"
Matt Hodges : "mg - presser at 12:30? only see 2:15 announcement"
Matthew Graham : "seems the consensus is that it's a non-event"
Victor Burek : "i'll be locking some today"
Ray J : "what's the expectation MG?"
Matthew Graham : "tomorrow = official FOMC Announcement, not minutes, FWIW"
Ray J : "i'm gutflopping"
Justin Dudek : "is everyone floating into the minutes tomorrow? "