Wed, Sep 23 2009, 8:40 AM
The mortgage market is in "wait and see" mode ahead of the FOMC statement. The 10yr Treasury note is at the high side of the recent range, currently t...
Wed, Sep 23 2009, 8:39 AM
Stocks are flat and the US dollar is nearing 2009 lows as the Federal Reserve prepares to release its monetary policy statement this afternoon. It’s a...
Wed, Sep 23 2009, 8:06 AM
Mortgage rates fell below 5% for the first time since mid-May last week, leading to increased appetite for refinancing, new loans, and purchases, an i...
Wed, Sep 23 2009, 5:18 PM
We're sorry, we know the constant RANGE BOUND RANGE BOUND RANGE BOUND can be frustrating at times...but look at the bright side, at least we didnt bre...
Wed, Sep 23 2009, 4:31 PM
Upon release of an upbeat communiqué from the Federal Reserve’s Open Market Committee, equity indexes jumped up to 11-month highs and the dollar weake...
Wed, Sep 23 2009, 3:02 PM
When Federal Reserve chairman Ben Bernanke called the recession “very likely over” last week, there was some talk about whether his colleagues on the ...
Wed, Sep 23 2009, 2:17 PM
So far, getting the expected bounce from a neutral to potentially bond friendly FOMC statement. As we discussed, most pre-statement concessionary sel...
Wed, Sep 23 2009, 1:02 PM
* $40 bln in 5 year notes
* 2.47 high yield with 40% taken at high yield
* significantly higher than WI yield
* Bid to Cover - 2.4
...
Tue, Sep 22 2009, 12:13 PM
The US dollar continues to weaken after a pause on Monday, boosting appetite for dollar-denominated commodities and pushing share prices up. Crude oil...
Tue, Sep 22 2009, 12:11 PM
Home prices bottomed out in the second quarter but prices are not rising as quickly as forecasters had assumed, an industry survey said Tuesday.
T...
Tue, Sep 22 2009, 11:23 AM
The dollar is weaker, oil is more expensive, gold has traded up to $1,019 after falling below $1,000 yesterday, and stocks are testing new 2009 highs....
Tue, Sep 22 2009, 10:48 AM
After holding steady near the top of the current trading range, mortgage backed securities came under selling pressure yesterday afternoon as stocks r...
Tue, Sep 22 2009, 8:48 AM
MBS trading flows are expected to slow as the two day FOMC meeting begins today. Thus, MBS price action will be left at the mercy of the gyrations of ...
Tue, Sep 22 2009, 8:29 AM
The Federal Reserve’s Open Market Committee begins its two-day monetary policy meeting today. Investors expect policy to remain accommodative well int...
Tue, Sep 22 2009, 4:55 PM
You might notice the title of today's MBS CLOSE doesn't include "MBS CLOSE." Considering AQ's afternoon commentary pretty much covers it for today an...
Tue, Sep 22 2009, 3:19 PM
Activity in the rates market has slowed following the 2yr note auction....even before then there wasnt much to discuss. This was expected as traders g...
Tue, Sep 22 2009, 1:02 PM
* High Yield of 1.034
* 27.16% taken at high
* WI yield was around .967
* Bid To Cover 3.23
* Indirect Bid of $19.18 bln out of $...
Mon, Sep 21 2009, 11:32 AM
The FN 4.5 is trading +0-07 at 100-22 yielding 4.378% and the FN 4.0 is +0-10 at 98-07. Friday afternoon price weakness did not carry over into today...
Mon, Sep 21 2009, 11:21 AM
Following a downturn in equity markets across the globe, US stocks opened sharply lower on Monday morning. A fifth straight advance in the Leading Eco...
Mon, Sep 21 2009, 8:45 AM
Global stocks are mostly lower. Dollar stronger, Oil cheaper (under $70 barrel), Gold cheaper (under $1,000). No US econ data. US stock futures lower...
Mon, Sep 21 2009, 8:30 AM
Equity markets across the globe are in sell-mode this morning, leading the US futures market to point to a lower opening while the US dollar is showin...
Mon, Sep 21 2009, 5:03 PM
Trying to find meaningful topics of conversation on interest rates beyond the customary treatment of the technical trading range is a tall order. Alt...
Mon, Sep 21 2009, 2:42 PM
Price levels in both MBS and tsy's are getting "testy" (in the sense that both are testing their most significant resistance levels of the month. But ...
Mon, Sep 21 2009, 1:23 PM
It was an up and down week for mortgage backed securities last week. Despite better than expected economic data, MBS didn’t give up too much ground ...
Mon, Sep 21 2009, 1:21 PM
Although anything over 100-12 leaves us in the long term horizontal range, albeit on the low-side, any time we cross the lows of the day, reprices are...
Fri, Sep 18 2009, 12:54 PM
The main headline this morning doesn’t come from the markets, which are mixed on light trading, but from the Treasury, which closed its guarantee on m...
Fri, Sep 18 2009, 11:51 AM
While stocks have moved aimlessly higher and lower today, the bond market has continued to chop around its recent range. The 10 yr note hit 3.37% over...
Fri, Sep 18 2009, 10:28 AM
Officials from four federal departments and agencies and attorneys general of 12 states met in Washington on Thursday to discuss what was termed an "e...
Fri, Sep 18 2009, 8:35 AM
Recap of Previous Session:
* healthy rally for MBS and tsy's with 4.5 fannies up 16 ticks (half a point)
* All this despite better than ex...
Fri, Sep 18 2009, 8:24 AM
Take a glance at the schedule and you could be forgiven for thinking it’s a holiday. No data from the US is will hit markets all day, nor are there Tr...
Fri, Sep 18 2009, 5:01 PM
If you were around much over the last 3 months, this week should look familiar. The patterns are, for the most part, similar, though this week's per...
Fri, Sep 18 2009, 4:02 PM
The Federal Housing Administration (FHA) today announced several significant policy changes that are intended to improve the housing agency's exposure...
Fri, Sep 18 2009, 3:42 PM
Chop Chop Choparoo! Looks like the days that have been light on data this week have also led to the most severe losses in bonds. I'd urge you though...
Fri, Sep 18 2009, 1:43 PM
The type of positive economic headlines seen yesterday would normally lead to lower bond prices and higher mortgage rates, but that turned out to be f...
Fri, Sep 18 2009, 1:43 PM
The government agency protecting mortgage lenders against losses has been burning through its liquidity as it attempts to stem the rising tide of fore...
Fri, Sep 18 2009, 1:22 PM
Volume is low and trading is slappity choppity sloppity. The 10yr JUST broke intraday resistance and the chances are increasing of a reprice for the ...
Thu, Sep 17 2009, 12:54 PM
Mixed housing and labor reports caused equity markets to flounder on Thursday morning. Early gains were given up, and after a second climb appeared to...
Thu, Sep 17 2009, 12:17 PM
The secondary mortgage market is in cruise control...the Fed continues to provide 2x liquidity for any originator looking to sell, yield spreads are a...
Thu, Sep 17 2009, 9:43 AM
The total number of housing starts came in at 598k, just 2k below the consensus forecast. But, rather than being driven by single-family starts, the n...
Thu, Sep 17 2009, 8:33 AM
After 830am data, stock futures are lower. TSY futures are higher. Cash market 10 yr note hit 3.50% before falling back to 3.47%....in futures 3.50 co...
Thu, Sep 17 2009, 8:08 AM
Equity futures are pointing up this morning as investors hope to keep the rally going for a fourth straight day. Since Monday the S&P 500 has gained 3...
Thu, Sep 17 2009, 6:39 PM
About half a facemelter in both MBS and tsy's today as MBS got half a point and tsy's another 4-6 ticks beyond that. As AQ pointed out in the previou...
Thu, Sep 17 2009, 5:56 PM
The goal of the Federal Reserve's agency MBS program is to provide support to mortgage and housing markets and to foster improved conditions in financ...
Thu, Sep 17 2009, 3:57 PM
Mortgages continue to trade well in both price (yay for loan officers) and in relative value (yield spreads tighter and tighter...OAS negative) This r...
Thu, Sep 17 2009, 2:28 PM
While the level of new delinquencies on residential mortgage loans has stabilized, the size of the “foreclosure pipeline” continues to grow. Accordin...
Thu, Sep 17 2009, 2:10 PM
As stocks continued a trend of selling that began shortly before the noon hour, bonds have rallied with MBS reaching up to familiar levels. The 4.5 i...
Thu, Sep 17 2009, 1:19 PM
Freddie Mac's Primary Mortgage Market Survey for the week ended September 17 reported the third consecutive week of lower rates for fixed rate mortgag...
Thu, Sep 17 2009, 1:12 PM
It was a bumpy ride in the mortgage backed security market yesterday. At the open, MBS moved considerably higher and lenders that issued rate sheets ...
Wed, Sep 16 2009, 12:00 PM
The bond market held up remarkably well yesterday considering stocks set new 2009 highs following more "better than expected" economic data and hopefu...
Wed, Sep 16 2009, 11:51 AM
As we discussed earlier, the AM data crushed the bond market sending MBS from 100-26 to 100-08. For those without calculators or excellent mental mat...
