Register or Sign in        Email This Page     Link To This Page    
Visit MND at MBA in NYC!
# of Subscribers
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: Uneventful Start This Week; Next Move Remains Debatable
Jan 19 2021, 3:51PM

Bonds began the day in weaker territory but rallied back to nearly unchanged levels after several comments from inbound Treasury Secretary Janet Yellen.  Of particular note were Yellen's comments on the possibility of repealing certain tax cuts as well as the need to get the federal budget on a more sustainable path.  Both of those bode well (or "better," anyway) for Treasury issuance vs demand.  The econ calendar was silent and other market moving headlines were scarce.  Traders are waiting for the next major cue that settles the debate between keeping the broader negative trend intact or riding the recent positive correction back to lower-yield technical boundaries.  

Econ Data / Events
Market Movement Recap
08:28 AM

Bonds were moderately weaker at the start of the overnight session, in line with gains in global equities markets.  Trading has been flat since the start of the European session with 10yr yields 2bps higher at 1.107%.  UMBS are starting the day down 2 ticks (0.06) just a hair under 103-00.

11:39 AM

Bonds rallying a bit on Yellen comments (i.e. parts of tax cuts should be repealed, Federal budget needs to be put on sustainable path).  10yr yields dropped from 1.116 to 1.090 as a result, but are still 1bp higher on the day.  UMBS 2.0 coupons are down 1 tick (.03) on the day, but up 2 ticks from the morning lows.

02:36 PM

Uneventful since the last update.  Yields rose modestly and briefly by way of correcting to the Yellen-inspired rally, but they're now back in line with the lows of the day.  MBS are dropping off a bit in the afternoon with both 2.0 and 1.5 coupons about 2 ticks (0.06) off their best levels.  Not a significant move by any means.

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
102-32 : -0-01
10 YR
1.0900 : -0.0070
Pricing as of 1/19/21 3:49PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
8:50AM  :  Slightly Weaker Overnight, Holding Inside Last Week's Range

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.

Economic Calendar
Time Event Period Actual Forecast Prior
Wednesday, Jan 20
7:00 MBA Purchase Index w/e 338.9
7:00 MBA Refi Index w/e 4706.3
10:00 NAHB housing market indx Jan 86 86

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 3.27%
  • |
  • 15 Yr FRM 2.64%
  • |
  • Jumbo 30 Year Fixed 3.20%
MBS Prices:
  • 30YR FNMA 4.5 108-07 (0-05)
  • |
  • 30YR FNMA 5.0 109-26 (-0-07)
  • |
  • 30YR FNMA 5.5 111-24 (0-02)
Recent Housing Data:
  • Mortgage Apps 2.79%
  • |
  • Refinance Index 3.16%
  • |
  • Purchase Index 1.82%