For all the possibilities, today ended up being both surprising and straightforward for bond markets. The surprise was that Ukraine headlines turned out to be the biggest market mover as they introduced a new level of physical violence and heightened risk of civil war. In quintessential "flight-to-safety" fashion, stock prices and bond yields fell in almost perfect unison. All told, it was enough to bring bond markets into positive territory after starting the day in the red.
As the headlines stopped coming, and after the European session closed, domestic markets turned around and unwound a good amount of the "risk-off" movement. Stocks ended up making it all the way back to morning highs while bond markets only gave up about half their gains.
Heading into the end of the day, we still have just over an eighth of a point in positivity left in MBS, but considering yesterday's prices trailed off before the close, we're actually more in line with yesterday's predominant afternoon prices (as opposed to being 4/32nds better). Rate sheets generally reflect the same as they're unchanged on average. Some of the lenders that repriced into the rally ended up coming back for a negative reprice with the afternoon correction.
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 : +0-06
101-11 : +0-06
104-17 : +0-04
| Treasuries || |
0.3710 : +0.0040
2.6229 : -0.0161
3.4553 : -0.0287
| Pricing as of 4/15/14 3:44PMEST |
Today's Reprice Alerts and Updates
2:56PM : ALERT ISSUED: Bond Markets Continue Giving Back Morning Gains; More Negative Reprice Risk
2:11PM : ALERT ISSUED: Negative Reprice Risk Already a Consideration for Some Lenders
12:57PM : MBS Now Above Yesterday's Highs; Ongoing Positive Reprice Potential
10:35AM : Bond Markets Jump into Positive Territory
8:51AM : Bond Markets Holding Ground at Slightly Weaker Levels After Data
MBS Live Chat Highlights
joon choi : "question, does freddie allow C/O refinance with POA?"
Sung Kim : "i dont think that is an agency issue joon, it's an investor issue"
Clayton Sandy : "Is the IRA subject to market movement? If so, then isn't 70% of the balance/monthly distributions?"
Brent Borcherding : "You have to take a percentage of the IRA balance, no? You can't use 100% due to value movement."
Sung Kim : "is this ukraine related or equity related? did ukraine cause equity sell off?"
Brent Borcherding : "Yes, Sung."
Samip Joshi : "Ukraine claims russian forces entered ukraine territory"
Sung Kim : "but why today? we heard "civil war" over the weekend. what makes today any more relevant? not buying Ukraine on this one"
Brent Borcherding : "What else, Sung? It's the only news line, frankly the data says we should be in the red."
Matthew Graham : "without commenting on 'why today' we can simply look at markets that are more directly affected, like Europe and see core sovereign debt rallying much more sharply"
: "here's a chart of the benchmark for European flights-to-safety vs Treasuries. http://mndne.ws/1eLD0Kb"