The last few ticks of price improvements in MBS amount to ill-gotten
gains as they represent a quick flight to safety owing, in large
part, to the tragic news out of Boston ( read more...
Stock prices and bond yields linked up in the sort of way we only see
when something catches markets off-guard, generating unified,
emotional response. S&P's just closed out their worst day of
the year, falling 36 points from the open, and more than a third of
it in the past hour following the Boston news. 10yr yields dropped
from 1.716 to 1.683 and are now back up to 1.692. Fannie 3.0s moved
from 104-05 to 104-10 and are now back down to 104-08. Markets are
only slowly backing away from the initial swing. In separate news, Bloomberg reported that North Korea would start
military actions against South Korea immediately. Those headlines
coincide with an initial turn in markets roughly 10 minutes before
the Boston news--the latter being the clear source of afternoon
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 4:07 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 Grudgingly Break Into New Highs. Positive Reprice Potential
It's been quite a slog for bond markets so far this morning--nothing negative by any means, but simply having a hard time making it past the longer term resistance levels that began the day. For MBS, that's 104-07 in Fannie 3.0s and for 10yr Treasuries 1.70. As we've noted a few times today, these levels are just the leading edge of small ranges. Set against a long term backdrop, these ranges have been major inflection points, thus causing some concern that we'd encounter precisely this type of resistance.
But markets can only trade aggressively "risk-off" for so long before something's gotta give, and it's giving a little at the moment. 10's still haven't cracked below 1.7, but at 1.7020, they're close. MBS, on the other hand, just hit new highs for the day, up 6 ticks at 104-10. At such levels, we're just edging into positive reprice potential territory. Meanwhile, the brunt of the "risk-off" move is being seen in a hefty stock sell-off. S&P's are down over 20 points!
Live Chat Featured Comments
Jason York : "REPRICE: 1:51 PM - Plaza Better"
Tom Schwab : "REPRICE: 1:32 PM - Franklin American Better"
Rob Clark : "REPRICE: 1:21 PM - Provident Funding Better"
Curt Sandfort : "some would say it is a great opportunity to buy"
Matthew Graham : "stocks apparently seeing room to drop as well"
Ted Rood : "More room to drop if you ask me."
Matthew Graham : "some more historical context: http://tinyurl.com/cx58qo4"
Matthew Graham : "http://tinyurl.com/cne2dd2"
Matthew Graham : "you are not kidding Ted!"
Ted Rood : "Guessing there's a little panic in gold markets today."