Remember the Polish Foreign Minister's warning about Russian troops amassing at the Ukrainian border?  No?  Can't blame you there, but what about the NATO general with a similar statement the next day?  'Who cares' you say?  Another understandable response, but to be fair, markets cared at the time.  In fact the growing threat of a Russia/Ukraine war has been one of leading concerns fueling a bond market rally.

So it's no surprise that bonds scurried back to weaker levels after the Russian Defense Ministry said the country ended "drills" on the Ukrainian border and would be returning to permanent stations.  Fortunately for MBS, Treasuries took the brunt of the punishment, but unfortunately, not enough to avoid negative reprices for a slight majority of lenders.

Still, there had been a cushion of gains in place from the overnight headlines that the US could (and shortly thereafter "did") begin airstrikes in Iraq.  The net effect is a Treasury market that ended the day relatively unchanged, and MBS prices that were about an eighth of a point weaker.  Keep in mind, however, that 4 tick weakness is PRE-ROLL.  It'll be about 14 ticks after the roll.

MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
MBS
FNMA 3.0
98-25 : -0-04
FNMA 3.5
102-16 : -0-05
FNMA 4.0
105-23 : -0-02
Treasuries
2 YR
0.4520 : +0.0160
10 YR
2.4270 : +0.0030
30 YR
3.2380 : +0.0030
Pricing as of 8/8/14 5:04PMEST
Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
4:04PM  :  ALERT ISSUED: Negative Reprice Risk Remains; Possibly Increasing as Levels Leak Lower
1:30PM  :  ALERT ISSUED: Bond Markets Drop on Russia/Ukraine Headlines; Negative Reprice Risk Potential
9:46AM  :  Bond Markets Surge Overnight, Dialed Back, but Gaining Again; MBS Underperform Horribly
MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Steve Chizmadia  :  "Thanks MG, I snuck 3 locks in before that reprice. "
Tim McNerney  :  "Locked one this AM-->thank you AGAIN to MBS Live!"
Matthew Graham  :  "RTRS - RUSSIA'S DEFENCE MINISTRY SAYS MILITARY EXERCISES NEAR UKRAINE BORDER ARE OVER -INTERFAX"
Tony Garcia  :  "UW discretion, I have closed a loan where we got a letter from the new employer stating the expenses are reimbursed and did not have to hit him"
William McGuirt  :  "Do you still have to hit the borrower with unreimbursed expenses for past years if they left the job and now are Reimbursed? "
Jason Anker  :  "lots of overlays on this one yes. I've stated FHA rules only"
Victor Burek  :  "but i think it is only in first 6 months, but lenders may have an overlay for year"
Jason Anker  :  "2011 revisoin confirms the below. 4155.2 4.7.f Second Appraisal Required on Properties Sold Between 91 and 180 Days After Acquisition A lender must obtain a second appraisal by another appraiser if •the resale date of a property is between 91 and 180 days following the acquisition of the property by the seller, and •the resale price is 100% or more over the price paid by the seller when the property was acquired."
Jason Anker  :  "ML 2006-14"
Victor Burek  :  "yes, fha requirement if over 100% increase"
Andy Pada, Jr.  :  "question is: is it a FHA requirement?"
Andy Pada, Jr.  :  "we always require a second appraisal when the value has increased by more than 100% within 12 months."