For a second day, bond markets and/or mortgage rates (take your pick) frolicked outside the walls of the castle. In this case, that castle is "the range" for pretty much all of June. In terms of mortgage rates, it was narrow enough that 4.25% was the best-execution rate for the entire month until yesterday when it moved to 4.125%.
In terms of 10yr yields, the lower bound was 2.57. The other way to look at it would be as the 25-day moving average below and the 100 day moving average above. That's not as clean as using the 2.57 line, but pick your poison. The updated charting functionality in the new version of MBS Live allows you to put both on the same chart. Any way you slice it, the 2 rightmost candlesticks are indeed 'frolicking.'
Yesterday's motivation was the weaker GDP reading. Today's was the weaker consumer spending data. Either that or bond markets are simply in a bullish stance heading into the end of the quarter and Tuesday becomes risky.
Today was good though. Bonds were even able to recover from a mild mid-day correction surrounding the 7yr auction. MBS ended very near their best levels, up almost a quarter of a point at 102-25 in Fannie 3.5s.
MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing
is available via MBS Live.
| MBS || |
98-22 : +0-09
102-25 : +0-07
105-31 : +0-05
| Treasuries || |
0.4686 : -0.0114
2.5322 : -0.0268
3.3574 : -0.0246
| Pricing as of 6/26/14 5:55PMEST |
Today's Reprice Alerts and Updates
3:18PM : Further Weakness Averted After Earlier Selling; MBS Back Near Highs
1:29PM : ALERT ISSUED: Bond Markets Weaker After 7yr Auction; Reprice Risk on Horizon
10:11AM : Bond Markets at Better Levels on Stock Swoon, Fed-Speak, Europe Sympathy
8:55AM : Bond Markets Slightly Stronger After Weak Consumer Spending Data
MBS Live Chat Highlights
Bryce Schetselaar : "wow. Two thumbs up on the changes. Very nice"
Joshua Crater : "my clients love to see the MBS dash on my 3rd monitor a 40" Vizio that runs all day (that is unless its a really RED day, then I switch it to SpongeBob)"