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» MBS Commentary Home

MBS OPEN: Flat AM Follows Yesterday's Selling

by Matthew Graham

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If you had a nickel for every time you'll hear "fresh supply concerns" today...
Tsy borrowing needs $115bln vs expected $111 plus all manner of stock boon combined to kill fixed income yesterday
Still about mid-range between annual highs and lows
MBS opening a tick or two down, but still at least 5 ticks off yesterday's lows.
4.5 at 99-14
illiquid, low volume, volatile summertime Friday session to come, can we get bounce?
Waiting on only data of the AM, consumer sentiment at 955am

MBS, Tsy, and LIBOR Prices...

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Comments

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Adam Quinones | Contact or Connect with this Member

READ: http://www.nytimes.com/2009/07/24/business/24trading.html?em

Adam Quinones | Contact or Connect with this Member

and good morning!

akaagassi | Contact or Connect with this Member

AQ - sounds like day trading on steroids Not sure how I feel about it overall. Smells bad. Computers taking advantage of normal market activity with advanced information that the rest of the market doesn't have yet - it's just like MLB allowing the pros to cheat...

Erich Lowe | Contact or Connect with this Member

AQ- It also sounds like this puts more emphasis on technicals than fundamentals. Consumer sentiment a much needed boost? Keep your fingers crossed.

memailbox | Contact or Connect with this Member

Can I get one of those for beating the reprice alerts??? HMMM?? Trendsniffer!! But seriously, this is a small part of how the man controls the money. stock market up? manipulate! stock martket down? Manipulate! And who gave the approval for this. The SEC. How quickly do you think they will stop this behavior. Not. profits rule!

Glen W. Spencer | Contact or Connect with this Member

totally agree with you on the crazy, stinky market. I know this is not the forum but I have to say it anyway: MLB players as a whole (not in part, not just 1 player per team), as a whole having been using Steroids since 1983. Yes over 25 years. Steriod use prior to making it Big Leagues (minors) in late 80's and early 90's was above 80% of every team member. Steriod Testing was against the Players Association Contract until 2004. "If your not cheatin', your not tryin, and it's only cheatin' if you get caught." Sorry wrong forum but had to say it.

Jason Andrews | Contact or Connect with this Member

Almighty buck...Almighty buck. Especially now when you have to make $2 dollars to buy $1.

Erich Lowe | Contact or Connect with this Member

Didn't Gordon Geckko have one of those computers?

NotFloatin' | Contact or Connect with this Member

AQ, having access to information that other investors do not have access to and buying intentionally just to use that info to drive up share price then dump on an investor that does not have access to the same info. is stealing. Plain and simple.

J. 'Hammer' Helmer | Contact or Connect with this Member

Just another example of where we are going - The HAVES and the HAVE NOTS. Like I told my kids since they were 4 years old - "Life's not fair". Some people get angry when they sit in traffic at an off ramp, while other cars whiz by them in the other lane to cut in at the last second. I've realized there are two kinds of people in this world - the SITTER and the CUTTER.........which one are you?

Bobby Downey | Contact or Connect with this Member

Hammer can you sit and cut simultaneously? Also, there may be a third category..the guy who sits in the other lane and blocks the cutters.......always hate that guy...anyway the market has a day of reckoning coming....and it will be ugly when it happens.....

Jason Andrews | Contact or Connect with this Member

I'm the guy that pulls over into that lane and stops everyone from cutting. So what does that make me?

Adam Quinones | Contact or Connect with this Member

yes Eric its a trader's world, we're just living in it. Good analogy Hammer....got a chuckle out of me

Ray J | Contact or Connect with this Member

Good article Adam, consider the fact that the banks running the high frequency algorithms are using FED money that they borrowed at 0% in large part to make these trades. real nice...taxpayers are subsidizing these banks on both sides.

Adam Quinones | Contact or Connect with this Member

Goldman is pretty good at program trading....I think they had decent trading revenues in their earnings statement. No?

Jeff Anderson | Contact or Connect with this Member

And the SEC is OK with this? Well, it took them over a decade to finally look in to Madoff.

Brett Boyke | Contact or Connect with this Member

there is a lot very good discussion about HFT at zerohedge.com.

Greg Baker | Contact or Connect with this Member

I love the forum and you all do a great job. I need a little educating as a consumer. When someone says their rate sheets have been repriced for the worst by .25, is that speaking of the actual interest rate being raised by .25, or the discount point to keep the same rate was raised by .25? Example, yesterday an interest rate of 5.25 would cost .50 discount points. If someone's rate sheet changed for the worst by .25, would they be referring to the interest rate going from 5.25 to 5.5 with a .50 discount point, or inorder to get 5.25 rate you would have to pay .75 discount points instead of .50 discount points? Thanks for the education.

Brett Boyke | Contact or Connect with this Member

High frequency trading accounts for 70% of the market volume, but is being done by 2% of the market participants. GS does 50% of that volume alone. Scary.

J. 'Hammer' Helmer | Contact or Connect with this Member

Andrews - "I'm the guy that pulls over into that lane and stops everyone from cutting. So what does that make me?"...............more of a *** than me! ROFLMAO..........sorry, couldn't resist ;-)

J. 'Hammer' Helmer | Contact or Connect with this Member

Greg, we are talking about our profit - your points.

Adam Quinones | Contact or Connect with this Member

reprice for the worse means lenders are lowering the prices they are willing offer originators to buy the loan they are planning to close (your loan). Less purchase price = less income to originator. So they will either raise the rate or the points they are charging to offset this loss of income. This is how loan originators make money...

J. 'Hammer' Helmer | Contact or Connect with this Member

One of my favorites of all time - pay attention to 1:09 and 1:18......AQ's "their world" comment reminded me of this one....... http://www.youtube.com/watch?v=8IoBLhcjX0Y