Register or Sign in        Email This Page     Link To This Page    
Visit MND at MBA in NYC!
28,899
# of Forum Posts
Subscribe
 Email Alerts
Receive an Email Alert each time a story is posted to MBS Commentary.
-
 RSS
Bottom Right Default
State Name: Connecticut
State Name underscore: Connecticut
State Name dash: Connecticut
State Name lower underscore: connecticut
State Name lower dash: connecticut
State Name lower: connecticut
State Abbreviation: CT
State Abbreviation Lower: ct
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.

Share:
  •  Email    Link Here
  • Widgets

MBS RECAP: Things Are Getting Ugly For Bonds
Jan 11 2021, 4:51PM

Earlier in the day, Treasuries looked to be selling off at a slower pace versus the past few trading sessions.  After sharp spikes in yields, this is the kind of pattern we tend to see before bonds find some support and undergo a friendly correction.  But just after the 9:30am NYSE open, Treasury yields hit more new long-term highs, thus re-setting our vigilant search for support.  To make matters worse, MBS underperformed (i.e. they had an even worse day than Treasuries) with both UMBS 1.5 and 2.0 coupons losing nearly 3/8ths of a point by the close.

Econ Data / Events
Market Movement Recap
08:34 AM

Treasuries were slightly stronger during the first part of the overnight session.  After a brief sell-off heading into domestic hours, yields just regained positive territory, down less than 1bp at 1.11%.  MBS are opening 1-2 ticks (.03-.06 weaker).  No econ data on tap (just 3yr Treasury auction and various Fed speakers).

01:12 PM

Bonds have weakened steadily since the more abrupt selling at the 9:30am NYSE open.  There are no specific market movers underlying the selling.  General pressure is coming from technicals/momentum, corporate bond issuance, and the Treasury auction cycle.

03:48 PM

The broader bond market remains sideways to slightly weaker at the highest levels since March.  MBS have been underperforming (still) and 2.0 coupons are now at the lowest prices since early August (1.5s weren't trading then).


MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
MBS
UMBS 2.0
102-24 : -0-11
Treasuries
10 YR
1.1460 : +0.0390
Pricing as of 1/11/21 4:49PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
3:19PM  :  ALERT ISSUED: Negative Reprices Becoming Likely
1:11PM  :  ALERT ISSUED: Negative Reprice Risk Increasing
9:42AM  :  ALERT ISSUED: Quick Trip to New Lows After NYSE Open
8:50AM  :  Roughly Unchanged After Calm Overnight Trading

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Dave Pressel  :  "I think this is nonsense. According to my borrower who currently has 4.750% he swears that rates should be at 1.750% on a 30 year"
Craig Griffin  :  "MG, you and the site are invaluable to my business. THANK YOU SO MUCH FOR ALL YOU DO FOR US!"

Economic Calendar
Time Event Period Actual Forecast Prior
Monday, Jan 11
13:00 3-Yr Note Auction (bl) 58
Tuesday, Jan 12
13:00 10-yr Note Auction (bl)* 38

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


Share:
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


Comments

Join Now or Login to Post Comments

 

More From MND

Mortgage Rates:
  • 30 Yr FRM 2.80%
  • |
  • 15 Yr FRM 2.30%
  • |
  • Jumbo 30 Year Fixed 3.30%
MBS Prices:
  • 30YR FNMA 4.5 108-16 (-0-02)
  • |
  • 30YR FNMA 5.0 110-15 (-0-01)
  • |
  • 30YR FNMA 5.5 111-08 (-0-01)
Recent Housing Data:
  • Mortgage Apps 1.06%
  • |
  • Refinance Index 1.40%
  • |
  • Purchase Index 1.81%