There haven't been many market moving headlines over the past 2 days with the exception of Germany removing the veil of secrecy from its fiscal stimulus discussions.  That hit bonds on Friday and again in the overnight session.  Otherwise, we've been essentially free from headline drama since Thursday afternoon (and no, Trump's dinner with Tim Cook wasn't a market mover).  

With all of the above understood, now consider that which came before it: plenty of headlines and plenty of gains in bonds (and losses in stocks).  

Putting two and two together, these news-free days have afforded the bond market (and stocks) a relatively innocuous opportunity (so far) to move in more of a corrective direction (i.e. higher yield) after 6 of the previous 11 days saw some of the biggest rallies in years.

Bottom line: until and unless things get a fair bit worse (10yr ceilings at 1.70 and 1.79), this is all actually a good thing for the sustainability of the recent rate rally.  


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
101-18 : -0-07
Treasuries
10 YR
1.6080 : +0.0680
Pricing as of 8/19/19 5:58PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
4:48PM  :  ALERT ISSUED: MBS at Weakest Levels; Reprice Risk Considerations
11:28AM  :  Buyers Stepping In (Hopefully) But We're Not Out of The Woods

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Jennifer Turner  :  "Found it: High LTV VA Cash-Out Refinances may be pooled into Ginnie Mae II Custom Pools without restriction, provided they satisfy the seasoning and number of payment requirements detailed in Chapter 24, Part 2 § (A)(3)(d)."
Jennifer Turner  :  "Most lenders start super conservative but there is guidance regarding seasoning and number of payments, so it'll probably all shake out in time"
Bryce Schetselaar  :  "seems like that will come down over time but they are probably just being conservative"
Bryce Schetselaar  :  "seeing most with 1.5-2 pt LLPA hits"
Bryce Schetselaar  :  "Several of our investors have come out with guidance"
Brian McFarlane  :  "has anyone confirmed that nobody will go cash out VA to 100% after 11/1? Ginnie will still allow this, it just has to go into a GNMA II custom pool. I still have 5 investors that will price this out, and none of them have released a memo stating they are dropping to 90 ltv. Seems like we would already have updates on something as big as this, especially since it was released by GNMA on 8/1."