MBS Live: MBS Afternoon Market Summary
In the title, the word "week" actually refers a whole week's worth of trading sessions, and another day and a half on top of that.  In other words, MBS and Treasuries both hit levels that were last seen as they were passed coming the other direction on the day of the Italian election surprise.  For 10yr yields, that's just under 1.95--sort of the outer limits of the post-election range before we'd consider yields to be more 'pre-election.'  Same story for MBS with respect to 103-06.  Most shockingly (or completely not shocking if you believed what we said about Italy driving the recent rally), at almost the exact same time that domestic bond markets were getting back in touch with 2/25's levels, so too were Italian credit spreads (which are what you'd pick if you could only choose one way to measure the implications of the election.)  Of course there have been tangential considerations for bond markets, such as this morning's ADP data which helped the weakness make it to the finish line.  But even though there's not a perfect 1:1 relationship between Italy and US debt.  There is and will continue to be a meaningful connection--one that must be balanced against incoming US economic data and events.
MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
FNMA 3.0
103-05 : -0-09
FNMA 3.5
105-17 : -0-06
FNMA 4.0
106-16 : -0-03
FNMA 4.5
107-18 : -0-01
GNMA 3.0
104-12 : -0-09
GNMA 3.5
107-16 : -0-05
GNMA 4.0
108-21 : -0-02
GNMA 4.5
109-03 : -0-06
102-24 : -0-08
105-06 : -0-03
106-04 : -0-02
106-26 : -0-02
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 this afternoon.

2:08PM  :  FED: Beige Book
Prepared at the Federal Reserve Bank of Kansas City and based on information collected on or before February 22, 2013. This document summarizes comments received from businesses and other contacts outside the Federal Reserve and is not a commentary on the views of Federal Reserve officials.

Reports from the twelve Federal Reserve Districts indicated that economic activity generally expanded at a modest to moderate pace since the previous Beige Book. Five Districts reported that economic growth was moderate in January and early February, and five Districts reported that activity expanded at a modest pace. The Boston District said the economy continued to expand slowly, and the Chicago District reported that economic activity grew at a slow pace.
Live Chat Featured Comments
A recap of the featured comments from the MBS Live Dashboard's Live Chat feature, utilized by hundreds of industry professionals each day.

Rob Clark  :  "REPRICE: 11:50 AM - Provident Funding Better"
Victor Burek  :  "it is..but good luck with getting extenuating circumstances approved"
Chip Harris  :  "Ouch. I though FHA was 2 yrs with extenuating circumstances."
Victor Burek  :  "4 year with 10% and 2 years with 20% down"
Victor Burek  :  "conventional, 7yrs with less than 10% down"
Amy  :  "Chip-FHA 3 years, otherwise, I know nothing. I have done VA after a foreclosure, but that probably won't help."
Chip Harris  :  "Anyone know off hand FHA and Conventional requirements for a purchase after deed in lieu?"
Ira Selwin  :  "We only have done one loan with them Dirk, went Ok."
Victor Burek  :  "just submitted first loan the other day"
Dirk Postupack  :  "Has anyone in here ever dealt with First American Mortgage trust? Had one of my broker friends recomend them to us, was just curious if they were any good."
Steve Chizmadia  :  "VB, good call on the over for the ADP today. Over/under on the 355K for claims tomorrow?"

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