If you'd given us the results of today's Employment Situation yesterday and asked us to predict how markets would react, we certainly have expected MBS and Treasuries to be weaker and stocks to be higher. The 171k payroll creation isn't stellar against a long-term historical backdrop, but versus the previous 148k (itself, upwardly revised from 114k), it seemed to connote enough improvement to cause concern for how the rest of the day would pan out at 8:31am. Indeed markets made the expected moves in the first few minutes following the report but soon reversed course in epic fashion. Throughout the election process, we've tried hard not to overanalyze its effects on markets, but an adjustment of election expectations is definitely a convenient way to explain why stocks sunk, bond markets rallied, and mortgages outperformed Treasuries.
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 4:06 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
MBS Continue Flying High While Stocks Slide
Fannie 3.0 MBS are up 7 ticks on the day at 104-27, near their highs of the day and highest levels since mid-October. They've been almost exclusively strong today after the initial post-NFP knee-jerk, with only a small bit of choppiness during the Fed's open market operations from 10:15-11:00am.
Treasuries also made it back to positive territory and have been holding a flat range there, though they've underperformed MBS on the day. Stocks are way down with S&P futures closing in on a 20 point loss from peak to trough.
Live Chat Featured Comments
BVG : "#2"
BVG : "REPRICE: 2:50 PM - Interbank Better"
Michael Mitchell : "REPRICE: 2:02 PM - Suntrust Better"
LSP : "REPRICE: 1:55 PM - Franklin American Better"
LSP : "REPRICE: 1:55 PM - M&T Bank Better"
Victor Burek : "REPRICE: 1:24 PM - Plaza Better"
Victor Burek : "REPRICE: 1:23 PM - Nexbank Better"
MC : "REPRICE: 1:19 PM - Flagstar Better"
Nate Miller : "PF only gave back an .125 so they are still worse than yesterday..."
Eric Franson : "REPRICE: 12:44 PM - Wells Fargo Better"
Nate Miller : "REPRICE: 12:44 PM - Provident Funding Better"
Kevin Wallace NMLS 76640 : "REPRICE: 12:39 PM - USBank Better"
Brent Borcherding : "REPRICE: 12:31 PM - Interbank Better"