10yr Treasuries--the best way we have to track the broader domestic bond market overnight--made it to the European session at the same levels seen just before Friday's NFP. The European session was immediately bond-market friendly and ushered 10's from 1.72 to 1.69, roughly. MBS walked into the New York session several ticks improved from Friday afternoon and along with Treasuries, rallied mildly though remained capped by resistance to more meaningful gains. By the end of the session, both have returned roughly in line with the morning levels--better than Friday's latest levels, but off the mid-day highs.
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
Some Selling Pressure, MBS Off Highs, Negative Reprice Risk?
We've seen two negative reprices so far today but neither of them are attributable to market weakness. The magic number for ACTUAL reprice risk to be increasing would be a break below 105-02 in Fannie 3.0s (and even then, we'd just be scratching the surface).
That having been said, we're getting closer. Fannie 3.0s are still 7 ticks up on the day, but have peeled back from recent 105-05 highs and are currently at 105-03. 10yr yields have trended higher since bottoming out at 2:20pm just under 1.675.
If these moderate losses continue at these moderate paces, we could imagine other lenders getting on board with the idea of negative reprices ahead of an uncertain few sessions ahead. Until we actually break 105-02 this is an earlier-than-normal alert, despite the fact that two lenders have repriced.
Live Chat Featured Comments
Matt Hodges : "I believe federal regs trump"
Mike Nondarakse : "Matt: Thanks! And that doesn't vary by state (if there is a more restrictive state requirement)?"
Matt Hodges : "correct Mike"
Mike Nondarakse : "Does anyone know the maximum late fee (after 15 days) on a VA loan? Is it 4%?"
Adam Quinones : "they'll settle or it will be dismissed. again."
Adam Quinones : "too hard to prove..."
Andy Pada : "geez...this buyback stuff never ends"
Matthew Graham : "RTRS- JPMORGAN CHASE & CO FAILS TO WIN DISMISSAL OF FHFA LAWSUIT OVER FANNIE MAE, FREDDIE MAC MORTGAGE SECURITIES LOSSES -- COURT RULING "
Mike Drews : "that was an itchy trigger finger for Flag"
Bryce Schetselaar : "Nice, Flagstar"
Bryce Schetselaar : "REPRICE: 12:52 PM - Flagstar Worse"
Bryce Schetselaar : "REPRICE: 12:04 PM - Franklin American Better"
Brett Boyke : "no payment history for the 2nd is the issue KC"
Ken Crute : "does 2nd have a balloon? is it acruing Interest? does have sufficent assets to pay in full? "
Brett Boyke : "have gone around and around on a couple like that AD. I would call Bank of Internet, they do some out of the box stuff"
Adam Dahill : "hey guys any ideas for this deal I'm working on? 800k loan on a 1 fam in NYC. client has a silent 2nd from NYU for 200k that has no payment. They have to repay when they sell or leave their job. Value is 2mm and both CLTV is 50% 800 fico etc... Chase Non-Conf denying because there is no payment. I used to get these done with Citi and they are currently with BofA. Any pointers?"