Activity in the TSY and MBS market has teetered out as the afternoon has wore on. Although earlier we noted some profit taking in the fuller side of the MBS coupon stack (5.5s to 6.5), "rate sheet influential" MBS coupons have gone sideways as TSYs prices settled into a less fickle range. We did see several MBS buyers emerge today including overseas investors showing interest in GN's, servicers added more current coupon MBS, and the Fed was of course an omnipresent source of liquidity for originators looking to lock in pipeline profits by selling MBS.

Today's facemelter granted lenders the opprotunity to reprice for the better...sometimes more than once. That said...mortgage rates are considerably lower heading into the close.

 

MBS, TSY, LIBOR QUOTES