Register or Sign in        Email This Page     Link To This Page    
Visit MND at MBA in NYC!
1,270
# of Questions
Subscribe
 Email Alerts
Receive an Email Alert each time a story is posted to MBS Commentary.
-
 RSS
Bottom Right Default
State Name:
State Name underscore:
State Name dash:
State Name lower underscore:
State Name lower dash:
State Name lower:
State Abbreviation:
State Abbreviation Lower:
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: Very Tame Reaction to The Fed Despite Bond-Friendly Message
Jan 27 2021, 4:59PM

Bonds took a bit of a lead-off heading into today's Fed announcement as 10yr yields flirted with a break below 1.0% for the first time since cresting that level in early January.  As expected and hoped, the Fed statement was a snoozer.  If anything, it was bond-friendly and Powell's press conference even more so.  Still, bonds barely budged.  Stocks were much more volatile with S&P futures falling more than 3% by the end of the day.  Last but not least, here's an obligatory Game Stop price update: 339.7 at the close, more than doubling yesterday's close.

Econ Data / Events
  • Fed UMBS Schedule 10am, 1130am, 1pm

  • Durable Goods: 0.2 vs 0.9   (Core CapEx: 0.6 vs 0.6)

Market Movement Recap
09:09 AM

Bonds rallied moderately overnight with most of the gains seen during the European session.  Early domestic traders piled into the same trade, especially after the weaker-than-expected Durable Goods data.  Bonds have their sights set on a break below 1.0% in 10yr yields and are currently less than 1bp away.  MBS are up an eighth of a point and stocks are down more than 1%.

01:43 PM

MBS are back in line with AM levels after a late morning rally that took 1.5 coupons more than a quarter of a point higher on the day.  10yr yields were unable to crack below 1.0%, but remain within striking distance (1.014%).  Stocks are still down big (1.5%).

03:38 PM

Very quiet trading during and after Fed statement and Powell press conference.  Powell was utterly supportive, but markets assumed he would be.  Bonds moved a hair higher in yield, but are now back in line with pre-Fed levels (same as the last update, except stocks have continued to tank, now down 2.7%).


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
103-14 : +0-02
Treasuries
10 YR
1.0160 : -0.0240
Pricing as of 1/27/21 4:57PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
2:06PM  :  Fed Statement Little-Changed; No Reaction in Bonds So Far
8:51AM  :  Lowest Yields in Weeks After Durable Goods Miss

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Matt Graham  :  "This could be fun to look back on in a few years: POWELL: DECLINES TO COMMENT SPECIFICALLY ON GAMESTOP STOCK VOLATILITY"
Matt Graham  :  "first question to Powell: game stop, wow"
Matt Graham  :  "POWELL: INFLATION HAS AVERAGED LESS THAN 2% FOR A QUARTER CENTURY"

Economic Calendar
Time Event Period Actual Forecast Prior
Wednesday, Jan 27
7:00 MBA Refi Index w/e 4261.5 4484.2
7:00 MBA Purchase Index w/e 334.2 348.2
8:30 Core CapEx (%)* Dec 0.6 0.6 0.5
8:30 Durable goods (%)* Dec 0.2 0.9 1.0
14:00 FOMC rate decision (%)* N/A 0 -.25% 0 -.25% 0 -.25%
14:36 Powell Press Conference *

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 3.29%
  • |
  • 15 Yr FRM 2.75%
  • |
  • Jumbo 30 Year Fixed 3.33%
MBS Prices:
  • 30YR FNMA 4.5 108-21 (0-01)
  • |
  • 30YR FNMA 5.0 110-19 (0-05)
  • |
  • 30YR FNMA 5.5 111-13 (-0-03)
Recent Housing Data:
  • Mortgage Apps -2.51%
  • |
  • Refinance Index -5.12%
  • |
  • Purchase Index -100.00%