Register or Sign in        Email This Page     Link To This Page    
Visit MND at MBA in NYC!
# of Visitors Per Month
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: Strong Move in Treasuries But MBS Underperform (Significantly)
Jan 25 2021, 4:17PM

While much of the world of finance and institutional investment seemed to be preoccupied with day trading some truly epic ridiculousness via Game Stop, the bond market was doing a few interesting things of its own.  Treasuries jumped out to an early lead with help from Europe, but several big trades helped yields move even lower after the 10yr broke an important floor at 1.075%.  MBS had a completely different day with a significant amount of underperformance during and after the Fed's final buying operation of the day.  At 4pm, UMBS 1.5 coupons were roughly unchanged on the day while 10yr Treasuries were nearly 5bps lower in yield!

Econ Data / Events
Market Movement Recap
08:23 AM

Moderately light volume overnight.  Bonds were flat during Asian hours, but rallied with European bonds following slightly weaker econ data and persistent covid-related concerns (i.e. new strains on the rise while vaccine distribution is sluggish).  10yr yields down more than 2bps and MBS starting out up an eighth of a point.

11:08 AM

Bonds going on a bit of a run now (in a good way), with several large block trades hitting CME screens at 10:21am ET.  Subsequently, heavy losses in stocks have driven additional 'flight-to-safety' trading.  10yr now down almost 5bps at 1.04% and MBS 1.5 coupons are up almost a quarter of a point.

03:19 PM

MBS-specific underperformance following the latest FedTrade buying operation (MBS sellers didn't move as much inventory as they would have liked and thus "put it on sale" after the Fed was out of the picture.  Both 1.5 and 2.0 coupons are down more than an eighth from intraday highs.  No real drama in Treasuries with 10s down 4.5bps at 1.04%.

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
103-10 : +0-02
10 YR
1.0330 : -0.0580
Pricing as of 1/25/21 4:15PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
3:15PM  :  ALERT ISSUED: Negative Reprice Risk Increasing For Some Lenders
11:18AM  :  Gains Getting Bigger After Block Trades and Stock Selling
8:41AM  :  Starting Out in Better Shape; Quiet Calendar

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%