Delivered to over
70,000+ industry professionals
each day, the Daily Newsletter is the
definitive recap of the day's most
relevant mortgage and real estate news and data. View the latest Newsletter below.
View our most recent newsletter below, or use the date selector to view past newsletters.
Decent Day Despite Lukewarm Treasury Auction. Dovish Fed Helps
This morning's weaker Durable Goods data had no effect on trading levels. At the time, bonds were in the process of moving up in yield after a decent little overnight rally, and the selling pressure continued until 9:30am. After drifting sideways for a few hours, a tepid 5yr Treasury auction failed to spook bond traders. Tentative gains followed with help from fairly dovish Fed speakers and mild slump in stocks. All told, another good day in building a case for support, but still not enough to rest easy.
Econ Data / Events
Fed MBS Buying 10am, 1130am, 1pm
Durable Goods -1.1 vs 0.8 f'cast, 3.5 prev Core Cap-Ex -0.8 vs 0.5 f'cast, 0.6 prev
Market Movement Recap
08:21 AM Bonds opened stronger in Asia and rallied heading into European hours. 10yr yields hit 1.59% before bouncing. The general tug-o-war was between fresh lockdown fears (global) and stronger econ data in Europe, as well as pre-auction hesitation in Treasuries. MBS are starting the day down 2 ticks (0.06), but that's a solid showing considering yesterday's closing levels.
09:28 AM Paradoxical upward pressure on yields since 9am. Hedge funds were better sellers, based on the expectation that dealers would lighten up ahead of this afternoon's Treasury auction. Dealers then sold as expected. Traders are taking baby steps due to uncertainty over quarter-end rebalancing among managed funds. MBS and Treasuries are now in negative territory on the day (10yr up 3 bps and MBS down almost an eight).
01:10 PM 5yr auction was acceptable but not great. Bonds are little-changed in response with 10yr yields up just under 2bps higher on the day at 1.64%. UMBS are outperforming with 2.5 coupons up 1 tick on the day.
03:04 PM Best levels of the day now with a little flurry of buying at the 3pm CME close. 10yr is down 1bp on the day at 1.612% and 2.0 UMBS are up 2 ticks (.06) trading just under 103.0.
|
MBS Commentary
|
|
|
Decent Day Despite Lukewarm Treasury Auction. Dovish Fed Helps
This morning's weaker Durable Goods data had no effect on trading levels. At the time, bonds were in the process of moving up in yield afte... (read more) |
|
|
Housing News
|
|
|
Mortgage originators' profits remained strong in the fourth quarter of 2020, although they were down considerably from the previous period. The Mortgage Bankers Association's (MBA's) Mortgage Bankers Performance Report says that independent mortgage ... (read more) |
|
|
Rob Chrisman
|
|
|
My cat Myrtle is not a huge basketball fan. And she certainly wasn’t interested in my idea recently to find fifteen people willing to pony up $1 million each to buy Michael Jordan’s place near Chicago. Hey, “Air” BNB it? Sell ... (read more) |
|
|
Housing News
|
|
|
Mortgage application volume declined for the third consecutive time during the week ended March 19 as refinancing continued to retreat. The Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey revealed a 2.5 percent decrease in th... (read more) |
|
|
Mortgage Rate Watch
|
|
|
Mortgage rates moved lower at a decent pace today for the 2nd day in a row. The average lender is still offering the same "note rate" compared to yesterday, but the costs associated with that rate are lower. In other words, "effective rates" (a synth... (read more) |
|
|
Housing News
|
|
|
The two-month rally in new home sales ended abruptly and definitively in February. The U.S. Census Bureau and Department of Housing and Urban Development said sales of newly constructed single-family homes dropped by 18.2 percent to a seasonally adju... (read more) |
|
|
|
|
