Today was one of those characteristically "slow Mondays" in the way only Mondays can be. It didn't help that Japan was out on Holiday (our turn next Monday 11/11/13). This kept much of what already would have been a slow overnight session completely grounded until European trading hours. Treasuries rallied modestly into the domestic session and proceeded to hold an extraordinarily narrow range around 2.60.
10's hit 2.589 around 10:42am and then set about trending gently higher to 2.602 by 3pm. MBS outpeformed during that time with 3.5's holding their ground near the best levels of the day. Economic data didn't have much of an impact, but tomorrow's ISM Non-Manufacturing data is a much bigger potential market mover than today's Factory Orders.
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 4:03 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 Drifting Sideways in Good Shape
MBS have been outperforming Treasuries fairly steadily all day, but most noticeably since 10:42am when 10yr yields bottomed out and moved gradually higher. During that same time, MBS have simply held sideways in a fairly narrow range between 102-06 and 102-10 in Fannie 3.5s.
The stability and moderate positivity were enough for a few lenders to offer positive reprices earlier, but that's they're the exception.
Live Chat Featured Comments
Ira Selwin : "BB - there may be "some" http://www.freddiemac.com/learn/pdfs/uw/docmatrix.pdf info here"
joon choi : "fannie does asset depletion, freddie no"
Brent Borcherding : "Anyone doing those?"
Brent Borcherding : "Anyone have info on the Freddie qualificaiton via Assets for income guidelines?"
Jay Rodriguez : "Kinecta"
Lynn ONeal : "us bank"
Neel Dhingra : "Does anyone know of an investor who is currently offering jumbo / non-conforming loans above 80% LTV?"
Matthew Graham : "RTRS - POWELL: REDUCTION IN BOND BUYS, EVENTUAL FED TIGHTENING NEED NOT BE DISRUPTIVE TO EMERGING MARKET ECONOMIES "
Matthew Graham : "RTRS- POWELL: EVENTUAL TIGHTENING WILL IN ALL LIKELIHOOD OCCUR IN CONTEXT OF MORE FIRMLY ESTABLISHED RECOVERY "