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MBS RECAP: Bonds Struggle to Hold Gains; Fed Announces 1.5 MBS Purchases
Oct 28 2020, 5:09PM

As of the 3pm CME close, 10yr yields were higher on the day.  Even though the losses were minimal, they're not what we'd expect given a 3% loss in stocks and a market that has frequently been trading risk-on/risk-off surrounding various covid/stimulus headlines.  There were no salient market movers behind the bond weakness.  MBS underperformed at first, but did a better job of holding their ground as Treasuries weakened later in the day (2.0 UMBS are unchanged at the moment).

Econ Data / Events
Market Movement Recap
08:36 AM

Markets are in the midst of a "risk-off" move as covid case counts surge worldwide and bonds correct toward lower yields after testing the upper reaches of a longer-term range.  10s are down 2bps to start and UMBS 2.0s are up 2 ticks (0.06).  Stocks are down nearly 2% from 5pm yesterday.

03:01 PM

As feared (though not necessarily expected), the first 2 days of the week have proven to be a head-fake for bond bulls.  Case in point, stocks are down nearly 3% and bonds can't manage to hold on to modest gains.  10yr yields are up 1bp at .779 and 2.0 UMBS are down 1 tick at 103-06 (-0.03 at 103.19).

MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
UMBS 2.0
103-06 : -0-02
10 YR
0.7743 : -0.0037
Pricing as of 10/28/20 5:07PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
11:20AM  :  ALERT ISSUED: Negative Reprice Risk Increasing

Economic Calendar
Time Event Period Actual Forecast Prior
Wednesday, Oct 28
7:00 MBA Purchase Index w/e 305.2 304.6
7:00 Mortgage Refinance Index w/e 3711.6 3620.5
13:00 5-Yr Note Auction (bl)* 55
Thursday, Oct 29
8:30 GDP Advance (%)* Q3 31.0 -31.4
8:30 Jobless Claims (k) w/e 775 787
10:00 Pending Sales Index Sep 132.8
13:00 7-Yr Note Auction (bl)* 53

About the Author

Chief Operating Officer, Mortgage News Daily / MBS Live
A former originator, Matthew began writing for Mortgage News Daily in 2007, covering a wide range of topics. Seeing a need in the marketplace, his focus increasingly shifted toward relating MBS and broader financial markets for loan originators. ... more

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More From MND

Mortgage Rates:
  • 30 Yr FRM 3.13%
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  • 15 Yr FRM 2.55%
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  • Jumbo 30 Year Fixed 3.18%
MBS Prices:
  • 30YR FNMA 4.5 107-28 (-0-02)
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  • 30YR FNMA 5.0 109-25 (0-01)
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  • 30YR FNMA 5.5 111-14 (0-10)
Recent Housing Data:
  • Mortgage Apps 2.79%
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  • Refinance Index 3.16%
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  • Purchase Index 1.82%