The trading day was an insult to anyone attempting to pay any attention today. Considering it was the slowest day of the year (including early closes ahead of holidays), it didn't take much effort by traders to move prices.
There are two ways to look at today's movements. On one hand, we could find some solace in the fact that MBS held their ground despite a modest rally in equities. On the other hand, we could be frustrated that we're not seeing a bigger bounce back. Actually, there's a third option here which is that it doesn't much matter either way because we arguably didn't see a quorum among market participants today and thus will put more stock in the week's coming sessions.
By way of recapping the market movements that we just established aren't worth recapping, Bond markets started out the day moderately stronger and made a brief push into even better levels. Just after 11am, liquidity and participation began falling off sharply, and prices turned the corner at the same time. The losses remained well-contained though a few lenders repriced after 3pm.
MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing
is available via MBS Live.
| MBS || |
96-21 : +0-03
100-25 : +0-03
104-02 : +0-03
| Treasuries || |
0.3952 : -0.0038
2.7151 : +0.0041
3.5210 : +0.0080
| Pricing as of 4/21/14 3:57PMEST |
Today's Reprice Alerts and Updates
2:40PM : ALERT ISSUED: Incremental Increase in Reprice Risk as MBS hit New Lows
1:24PM : ALERT ISSUED: At Session Lows, on the Edge of Negative Reprice Risk
9:14AM : Bond Markets In Moderately Stronger Territory Amid Quiet Conditions
MBS Live Chat Highlights
Jeffrey Statz : "anyone familiar with the freddie 1st look initiative?"
Peter Bethke : "Jeff - first 20 days of a Freddie owned listing is limited to owner occupants only."
Jeffrey Statz : "thanks, and what is Freddie's equivalent program to HomePath Renovation? the property in question is As-is and needs work. If no other option, we can give 203k a shot."
Hugh W. Page : "If anyone has closed a Homepath Renovation loan (or Freddie's equivalent) you have nothing but utter respect and admiration from me."
joon choi : "what are you guys quoting for 15yr 210k, 70ltv 794fico, no esrow"
firstname.lastname@example.org : "3.375%, where are you at Joon? "
joon choi : "3.375"