MBS and broader bond markets began the day in weaker territory after a major "risk-on" move in the overnight session. What's interesting (maybe?) is that the "risk-on" movement never really let up in terms of equities markets, yet bond markets were able to claw and scratch their way to some moderate improvement leaving MBS at levels that aren't quite as bad as those seen this morning. Specifically, Fannie 3.0s were as low as 104-26 into the 10am hour but made it all the way to 104-31+. That's not an especially huge move and is fairly meaningless in the big picture, but considering S&P futures added almost 25 points over Friday's latest levels, for MBS to only be 2 ticks weaker seems 'less bad' than it could be. Data was shrugged off and volume was LOW. A few positive reprices trickled in late in 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 4:11 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 Hit Highs Of The Day. Enough For A Reprice?
Most of the content of this alert is in the title, largely because the trading day has been so uneventful. Fannie 3.0s are half a tick from 105-00, which is the highest they've been all day, and 5+ ticks higher than 10am levels. On some day, that's sufficient for positive reprices, and they're not completely out of the question today, but we'd note the lateness in the session as well as the more conservative tone already present on today's crop of rate sheets. That could be a hint that lenders won't be overly eager to reprice according to general past precedent. Bottom line, reprices aren't impossible at these levels, but neither are we holding our breath.
More Can-Kicking For Greece...
- Continuing in the fine European debt crisis tradition of making decisions without tangible, consequential results, FinMin's agreed to maybe give Greece some cash, maybe later, maybe... Nothing significant happening on this one. Here's a good recap of the convoluted, indecisive conditionality:
(Reuters) - Euro zone finance ministers will give a tentative go-ahead for the disbursement of 44 billion euros in emergency loans to Greece on Tuesday, but the money will only be paid on Dec. 5 if the country meets all remaining conditions.
Officials familiar with preparations for the finance ministers' meeting expect a "political endorsement in principle" on unfreezing loans to Athens, along with a discussion on how to reduce Greek debt and provide two extra years of external financing to allow the country to meet its fiscal targets.
Greece must also show that it has fully committed to a detailed package of economic reforms, called "prior actions", before any further emergency loans can be paid out.
Once ministers have given their political endorsement, proposals on how to cut Greek debt and provide additional financing can be sent to national parliaments for approval, a step that is expected to be completed by Nov. 30.
This will give Athens time to complete the few outstanding "prior actions". International lenders will check if the remaining reforms are in place on Nov. 28 and euro zone finance ministers will make the final decision to pay the next tranche to Athens on Dec. 3, according to the schedule seen by Reuters.
Live Chat Featured Comments
Jeff Statz : "New DU 9.0 FAQ https://www.fanniemae.com/content/faq/do-du-release-10202012-faqs.pdf"
Tom Schwab : "REPRICE: 3:54 PM - Franklin American Better"
MC : "REPRICE: 3:51 PM - Flagstar Better"
Jason Adams : "I was getting them very often prior the latest release"
Jason Adams : "I just got a PIW on a rate and term non HARP. This is the first one since the latest DU update. have you guys been seeing any?"
Jason Adams : "me too"
Victor Burek : "i think they do"
Matthew Graham : "is there a consensus on that?"
Matthew Graham : "General perception out there that lenders tend to price more conservatively into holiday time off? "
Tim Mitchell : "i agree with that, 70% of my pipe is locked, i'm just wondering why people are leaning lock this week vs last .. "
Gus Floropoulos : "I think the logic is risk vs reward buddy"
Tim Mitchell : "I noticed that the community lock /float sentiment is trending towards lock .. I'm wondering why? Crisis in the middle east, fiscal cliff retoric amicable but for how long, fed continues to put 40 bil a month into MBS, what could turn this around? Just curious"
Darren Costa : "MG, I like the trend line notes if you're the one putting those on the chart"
Michael Gannon : "haha gotta love "make it up as you go along""
Matthew Graham : "not only that, but the report also mentioned "any basis the
Secretary determines appropriate." "
Michael Gannon : "Anybody have any info on how they will calculate the compare ratio going forward in 2013? they referenced geographic area....does anyone know if they mean state, Hud office, or HOC center?"
Kent Mikkola #353976 : "REPRICE: 1:09 PM - Provident Funding Better"
B-C : "looks like the community sentiment is locking within the next 10 days"
Matt Hodges : "pondering it, certainly"
B-C : "anyone floating through the long weekend?"
Gus Floropoulos : "10 yr in an extremely tight range"
Brett Boyke : "not much action today, pretty slow day with the holiday coming up"