Register or Sign in        Email This Page     Link To This Page    
Visit MND at MBA in NYC!
# of Forum Posts
Fed Minutes Today at 2pm EST
Follow the markets live as the Fed Minutes are released at 2pm EST today.
Thomson Reuters MBS Aggregations
Gain access to a powerful search engine and most accurate and timely mortgage industry originator and servicer rankings.
MBS Basics:   Part 1  |  Part 2  |  Part 3  |  Part 4  |  The Gut Flop
It's Fed Day. Are you ready?
If you've been following the MBS Commentary, you know what a big deal this afternoon could be. Markets have been preparing for it for weeks and MBS Live members have been on top of those movements every step of the way.
This afternoon, when markets are convulsing mere milliseconds after the Fed Announcement, MBS Live members will know what's going on before anyone else. The accuracy and speed of our real-time price stream and alerts is unmatched.
Here's a purchase code to take the free trial for 4 weeks with no credit card required.

  •  Email    Link Here
  • Widgets

MBS RECAP: Bonds Find Their Range Ahead of Jobs Report
Dec 3 2020, 4:29PM

The first 2 days of the month (yesterday and the day before) were all about a quick adjustment into weaker territory for the bond market.  Today served as confirmation that the adjustment was complete.  The result?  10yr yields are ready to digest tomorrow's jobs report from a relatively high perch in the low 0.9's.  MBS are still in their own world, and nowhere near the weaker levels seen in early November.  Moreover, rates are so high relative to MBS prices that lenders don't need to make big changes to rate sheets until bond market weakness gets extreme.

Econ Data / Events
  • 20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th)

  • Jobless Claims 712k vs 775k f'cast, 787k prev

  • ISM Non-Manufacturing PMI 55.9 vs 56.0 f'cast, 56.6 prev

Market Movement Recap
08:13 AM

Reasonably sideways overnight session for Treasuries.  Much like yesterday, we're seeing selling increase as domestic traders get started for the day.  10yr yields are roughly unchanged ahead of the AM data and MBS are just a hair weaker.

09:40 AM

For the 3rd straight day of the new month, Treasuries are making one of their biggest moves of the day at the 9:30am NYSE Open.  Unlike the past 2 days, today's version sees yields falling modestly but quickly from just over .93 to just under .92.  They've already bounced back up to .925, but it was interesting nonetheless.  MBS added one tick (0.03) and are now unchanged on the day.

01:31 PM

Nice little recovery in bonds (discussed in greater detail in this update).  Yields bottomed in the noon hour at the EU bond close, but haven't bounced too much higher since then.  Treasuries are leading the way and MBS are underperforming for a change.  2.0 UMBS down 3 ticks (0.09) at 100-27 (100.84).  10yr yields down 1.7bps at .92%.  

04:14 PM

Stocks and yields dropped moderately but abruptly following vaccine related headlines (supply chain and quality control issues causing delays for Pfizer... 50% of initial estimate will ship.  "raw materials didn't meet standards").  Yields briefly touched .90% but are back up to .915% now.  MBS are near the highs of the day, but did not have a major response to the headlines.

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
103-22 : +0-01
10 YR
0.9130 : -0.0330
Pricing as of 12/3/20 4:27PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
3:51PM  :  Yields Briefly Drop to Best Levels After Vaccine Headlines
12:11PM  :  Treasuries Rallying Despite Stronger Stocks
8:47AM  :  Microscopic Weakness After Jobless Claims Beats Forecast

Economic Calendar
Time Event Period Actual Forecast Prior
Thursday, Dec 03
8:30 Continued Claims (ml) w/e 5.520 5.915 6.071
8:30 Jobless Claims (k) w/e 712 775 778
10:00 ISM N-Mfg Bus Act * Nov 58.0 60.9 61.2
10:00 ISM N-Mfg PMI * Nov 55.9 56.0 56.6
Friday, Dec 04
8:30 Non-farm payrolls (k)* Nov 469 638
8:30 Unemployment rate mm (%)* Nov 6.8 6.9
8:30 International trade mm $ (bl) Oct -64.8 -63.9
10:00 Factory orders mm (%) Oct 0.8 1.1

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

Other Contributors

Discuss the MBS and Mortgage Markets on Our Streaming Dashboard
Discuss MBS and Mortgage Markets with Hundreds of Loan Officers on the MBS Live Streaming Dashboard.
  »Start a Two Week Risk Free Trial


More From MND

Mortgage Rates:
  • 30 Yr FRM 3.03%
  • |
  • 15 Yr FRM 2.48%
  • |
  • Jumbo 30 Year Fixed 3.10%
MBS Prices:
  • 30YR FNMA 4.5 108-07 (0-01)
  • |
  • 30YR FNMA 5.0 109-24 (-0-01)
  • |
  • 30YR FNMA 5.5 111-13 (0-00)
Recent Housing Data:
  • Mortgage Apps 2.79%
  • |
  • Refinance Index 3.16%
  • |
  • Purchase Index 1.82%