MBS and Treasuries are both in slightly positive territory, and that's saying something considering the apparent challenge involved in getting here. Treasuries were weaker overnight, resulting in a weaker open for MBS as well. Both actually remained in negative territory through the ADP Employment data at 8:15am, though it did help them find their footing.
The 2nd major report of the morning--ISM Non-manufacturing--was also weaker than expected. It similarly contributed to bond markets holding their ground, but for the first 30 minutes after the report, trading continued to look conflicted and sideways as opposed to convincingly stronger.
That could have to do with some predisposition for bond markets to get back to more neutral territory after the Ukraine-related panic subsided. In that sense, this weaker data is trying to push MBS prices up a hill. It's mostly been successful, but the challenge is apparent as Fannie 4.0s are only 4 ticks higher on the day. 10yr yields are a mere 0.005 lower. Most of the improvement has come in the last hour. Several lenders have repriced, but not by much.
MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing
is available via MBS Live.
| MBS || |
96-28 : +0-04
101-04 : +0-04
104-20 : +0-03
| Treasuries || |
0.3331 : +0.0001
2.6905 : +0.0005
3.6318 : -0.0052
| Pricing as of 3/5/14 11:48AMEST |
Morning Reprice Alerts and Updates
10:27AM : ISM Services Weaker, Especially Employment; Bonds Hold Ground
8:41AM : Bond Markets Weaker Overnight; Little-Changed After ADP Data
Live Chat Featured Comments
Christopher Stevens : "Going to take a big miss to push 10yr below 2.65 imo"
Andy Pada, Jr. : "i think we will be pleasantly surprised. I don't believe that February was a strong job creation month at all."
John Tassios : "it should be a soft number, jobless claims did not move much the past 4 weeks and if anything, went higher a bit more than january"
Christopher Stevens : "Weather free April/May numbers are the only thing that can take us out of this 2.65-3 range in the 10YR. "
Matthew Graham : "RTRS- ADP NATIONAL EMPLOYMENT REPORT SHOWS U.S. EMPLOYMENT INCREASED BY 139,000 PRIVATE SECTOR JOBS IN FEBRUARY"
Matthew Graham : "RTRS- REUTERS CONSENSUS FORECAST FOR ADP PAYROLL CHANGE FOR FEB WAS FOR INCREASE OF 160,000 JOBS"
Jeff Anderson : "Big Jan revision down. -48k."
Matthew Graham : "RTRS- US ADP JANUARY PAYROLL CHANGE REVISED TO +127,000 FROM +175,000"
Charles Tadros : "Perfect!!! Rally time"
Corey Leonard : "Here's the real question.....lock now or wait till after nfp?"
Victor Burek : "I will be day to day, or hour to hour"
Charles Tadros : "See how things go today and tomorrow CL"
Charles Tadros : "If you are getting what you want and borrower is ok with it I would like prior. "
Christopher Stevens : "lock on closings taking place <30 days. Can always reno if rates drop."
Corey Leonard : "That's my opinion as well"
Victor Burek : "same here, too risky to float nfp"
Matthew Graham : "RTRS - ISM REPORT ON U.S. NON-MANUFACTURING SECTOR SHOWS PMI AT 51.6 IN FEBRUARY (CONSENSUS 53.5) VS 54.0 IN JAN"
Matthew Graham : "Edgar, you should read up on what they're trying to do man... You'd be a lot less angry at them."
Matthew Graham : "Saving grace for today: RTRS - ISM NON-MANUFACTURING EMPLOYMENT INDEX 47.5 IN FEBRUARY VS 56.4 IN JAN"