MBS Live: MBS Afternoon Market Summary

NOTE: Some readers may have received a glut of previous MBS Commentary updates from 3:10 - 3:55pm.  We're very sorry for the inconvenience.  It should not be an issue going forward as it was a factor of a one-time systems test.

As far as bond markets are concerned, things were much less interesting than our technical difficulties.  MBS started the day in weaker territory thanks to bond market weakness in Europe overnight but soon had eclipsed yesterday's trading range by more than an eighth of a point as domestic traders pushed back.

Some lenders repriced positively on that rally, but not many.  The gains have been slowly evaporating ever since hitting the highs just before 11am and we're now heading into the final hour just 1 tick lower on the day.

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
94-28 : -0-02
FNMA 3.5
99-08 : -0-02
FNMA 4.0
102-27 : -0-01
FNMA 4.5
105-28 : +0-03
GNMA 3.0
96-15 : +0-00
GNMA 3.5
100-20 : -0-01
GNMA 4.0
103-23 : +0-00
GNMA 4.5
106-17 : +0-04
FHLMC 3.0
94-21 : -0-02
FHLMC 3.5
99-02 : -0-02
FHLMC 4.0
102-19 : +0-01
FHLMC 4.5
105-23 : +0-06
Pricing as of 4:08 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.
1:39PM  :  ALERT ISSUED: MBS Back to Unchanged as Treasuries Head Over 3%; VERY Small amount of reprice risk.

Not for the first time today, 10yr yields are trading just over 3%, currently up 1.3bps at 3.004.  Along with MBS, they hit their best levels of the day just before 11am. 

MBS have been moving into weaker territory since then as well, but not at any sort of alarming pace just yet.  Fannie 4.0s are still up 1 tick on the day (just hit 'unchanged' and bounced) at 102-28. 

With previous highs at 103-01, this is technically enough movement to be on the very edge of negative reprice risk, but only for lenders who priced or repriced near those higher levels.  All in all that makes reprices fairly unlikely for almost everyone, but not something that could be completely ruled out. Bottom line: if you weren't planning on locking today, this shouldn't change that, but if you were, now's as good a time as any.

1:37PM  :  ALERT ISSUED: MBS Back to Unchanged as Treasuries Head Over 3%

Not for the first time today, 10yr yields are trading just over 3%, currently up 1.3bps at 3.004.  Along with MBS, they hit their best levels of the day just before 11am. 

MBS have been moving into weaker territory since then as well, but not at any sort of alarming pace just yet.  Fannie 4.0s are still up 1 tick on the day (just hit 'unchanged' and bounced) at 102-28. 

With previous highs at 103-01, this is technically enough movement to be on the very edge of negative reprice risk, but only for lenders who priced or repriced near those higher levels.  All in all that makes reprices fairly unlikely for almost everyone, but not something that could be completely ruled out.

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.
Michael Ullmann  :  "or they would have to start pricing it at 8-10 percent for it to even be worth the risk they are taking on with QM rules."
Michael Ullmann  :  "AD: They pulled it b/c of QM. There would be way too much liability if they continued doing siva"
Nate Miller  :  "MW headlining 10yr over 3.0% for first time since 2011…looking at the adv. charts fnma 4.0 was down below 101 back then, we are in pretty good shape considering.."
Adam Dahill  :  "Hudson City just pulled SIVA. One of the last ones that were still doing it"
Matthew Graham  :  "Yes but not much AP"
Andy Pada  :  "will it be any busier next week?"
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