MBS OPEN: Tsy Rally Extends, MBS Catching A Little Love As Spreads Continue To Widen...
Friday's Recap
- Tsy's and MBS rallied fairly well, but gave most of it back by day's end.
- Bullish Consumer Sentiment
- 10 yr touched the 3.4's before selling. 5.0 FNMA MBS were back near 102-00
- quarter end remains a big variable for flows, ostensibly pushing the tsy bid vs. MBS.
The AM So Far...
- 10yr Tsy pushed back into 3.4's. 3.4's pushed back.
- MBS up, but again, Tsy's leading the charge into quarter end.
- quarter end remains a big variable for flows, ostensibly pushing the tsy bid vs. MBS. (echo?)
- Wary about selling early this week, hoping for positivity to pick up as week progresses.
- Keep fingers on triggers for short term deals
THE RATES PAGE
Charts
2s vs. 10s: 240
6/26 EFFECTIVE FED FUNDS:
-0.01 to 0.18
from 0.19
LIBOR FIXINGS
O/N
LIBOR: -0.0012 to
0.2637 from 0.2650
1
MONTH: -0.0012 to
0.3088 from 0.3100
3
MONTH: -0.0006 to
0.5969 from 0.5975
6
MONTH: +0.0225 to 1.1175 from
1.0950
1 YEAR: +0.0063 to
1.5975 from 1.5912