MBS saw their first trades of the day come in just a hair over yesterday's latest levels, which were also the best of the day. They never looked back today, having held at least 2/32nds into positive territory even at their worst moments. That was a fertile environment for stronger morning rate sheets, and the ongoing stability during the day made for few reprices (though the few seen were positive).
Heading into the 11am hour (seems like we've been saying that a lot this week... coincidence?) bond markets were rallying exponentially and charts began taking on that delightful "snowball buying" shape. But the best levels of the day were in at 11:10, and everything moderated from there. 10yr yields made a calm, linear move back toward unchanged levels (they haven't gotten there yet--still down 1.6bps on the day). MBS returned to morning levels more quickly and have simply held sideways in a narrow range since then.
For a market that's ostensibly hanging on every word out of Ukraine, this is pretty uneventful movement. More likely, Ukraine headlines are providing a clearly supportive environment, helping to keep rates pinned down in the lower half of their 3 month range. The narrowness and lack of steeper movement is most likely a nod to the importance of next week's events, which include an FOMC Announcement and Nonfarm Payrolls.
MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing
is available via MBS Live.
| MBS || |
97-10 : +0-05
101-11 : +0-04
104-17 : +0-04
| Treasuries || |
0.4339 : -0.0081
2.6714 : -0.0166
3.4477 : -0.0163
| Pricing as of 4/25/14 3:37PMEST |
Today's Reprice Alerts and Updates
12:23PM : Bond Markets Sparkle and Fade; Afternoon Outlook is Cloudy
9:48AM : Bond Markets Holding Overnight Gains Ahead of Consumer Sentiment
MBS Live Chat Highlights
Clayton Sandy : "who do you guys use for nonwarrantable condos? I have an investment condo in a complex where it's all college students so my investor concentration is off the charts."
Jason Anker : "santander does them"
Ted Rood : "Advancial does them, and Alliant CU."
Matthew Graham : "RTRS- FREDDIE MAC CEO LAYTON SAYS U.S. SENATE HOUSING FINANCE BILL COULD UNDERMINE MORTGAGE MARKET STABILITY--LETTER OBTAINED BY REUTERS"
Matthew Graham : "RTRS- LAYTON SAYS ONE CONCERN IS THAT BILL DOESN'T CLEARLY STATE FREDDIE MAC AND FANNIE MAE'S CORE FUNCTIONS SHOULD BE MAINTAINED DURING TRANSITION TO NEW MORTGAGE SYSTEM"