Fannie 4.0s are up 5 ticks at 104-28. That's 9 ticks lower than the early February highs, but keep in mind those highs came just before the roll, which was about 10 ticks. So in a magical world where there's no monthly MBS settlement, we would be closer to 2-3 ticks off those highs (as opposed to 9).
The past 5 sessions have all been positive for MBS, though yesterday and today are the ones that have really broken out of the recent sideways trend. That could have as much to do with what seems to be a strong month-end buying spree for bond markets combined with spillover from European bond market demand, itself drawing extra motivation from geopolitical risks surrounding Ukraine. Say that 5 times fast...
Yellen spoke to the Senate Banking Committee today, but there was no significant market reaction. Some traders, however, fell out of their chair laughing at a few of the questions. My personal favorite was when Yellen expressed obvious bewilderment at Senator Shelby's failure to grasp the difference between Basel III mandated reserve ratios for Bank MBS holdings and the absence of reserve ratio requirements for the Fed's MBS holdings. (Disclaimer: I have no opinion positive or negative on the Senator in question, but this particular interchange was highly entertaining on several levels).
MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing
is available via MBS Live.
| MBS || |
97-09 : +0-07
101-16 : +0-06
104-28 : +0-05
| Treasuries || |
0.3245 : -0.0035
2.6405 : -0.0335
3.5924 : -0.0426
| Pricing as of 2/27/14 4:52PMEST |
Today's Reprice Alerts and Updates
10:18AM : Europe and Month-End Keep Bond Markets Propped up
8:46AM : Bond Markets Pull Back After Stronger Durable Goods Data
MBS Live Chat Highlights
Vince Boryla : "I have a client that is closing today on a house. How long did I have to wait for a cash out refi. I thought it use to be 6mos. Thanks "
Vince Boryla : "Buying the house all cash today no appraisal "
Frank Hanna : "Vince, FNAM will be 6 months to take cash out. value will be based upon appraisal as long as the increasae (if any) is justified."
Matthew Graham : "check delayed financing exception. he paid cash"
Hugh W. Page : "Vince if you can go thru PennyMac they have a Delayed Financing Exception for cash out sooner than 6 mos. "
Bryce Schetselaar : "What has to be done to qualify for the exception?"
Hugh W. Page : "Original Transaction must be ARM's Length documented by HUD1 confirming no financing on original deal. Must source original purchase funds and new loan amount cannot exceed actual documented amount of borrower's initial investment plus financing closing costs. Treated as Cash Out Refi. Original funds to purchase can't be gift either."
Timothy Baron : "I believe Chase, Flagstar, and Greentree will do these, in addition to Penny Mac as mentioned before."