Mon, Oct 19 2009, 11:00 AM
This morning the Federal Reserve formally addressed whispers regarding their intentions to conduct reverse repos in the open market. A "repo" is short...
Mon, Oct 19 2009, 8:39 AM
Scheduled data doesn't show up until tomorrow, so the focus this AM is on Ben and beyond that, speculation and headline responses. So far this AM, MB...
Mon, Oct 19 2009, 5:20 PM
After some morning volatility and a fairly directional rally in stocks, MBS and Tsy's settled into a range and Stocks seemed to hit the wall at 1100 o...
Mon, Oct 19 2009, 3:41 PM
Heading into the 5pm "BONDS PERFORMED WELL DESPITE RALLYING STOCKS" marking period the FN 4.0 is +0-04 at 98-09 yielding 4.1775% and the FN 4.5 is tr...
Mon, Oct 19 2009, 1:35 PM
After a noticeable spike in bond prices following the reverse repo press release this AM, both MBS and TSY's have settled back into an uneventful rang...
Fri, Oct 16 2009, 11:06 AM
The FN 4.0 is currently +0-02 at 97-26 yielding 4.225% while the FN 4.5 is trading +0-02 at 100-17 yielding 4.438%. The secondary market current coupo...
Fri, Oct 16 2009, 8:20 AM
There is no reason to believe the Fed will raise rates anytime soon thus yields in the short end of the curve will remain in record low territory...th...
Fri, Oct 16 2009, 5:01 PM
Fri, Oct 16 2009, 3:51 PM
Heading into the 5pm "HOLY COW THE DOW HIT 10,000" marking period (please note sarcasm), the FN 4.0 is +0-10 at 98-02 yielding 4.199% and the FN 4.5 i...
Fri, Oct 16 2009, 1:30 PM
Thu, Oct 15 2009, 10:46 AM
The FN 4.0 is trading -0-12 at 97-25 yielding 4.228 while the FN 4.5 is -0-09 at 100-19 yielding 4.429%.The secondary market current coupon is 4.349% ...
Thu, Oct 15 2009, 8:32 AM
MBS and Tsy's are understandably worse given the above raft of data that is generally economically bullish. The exception obviously would be in the in...
Thu, Oct 15 2009, 7:34 PM
Before you get too excited at the sight of 3.50% across the headlines of a mortgage website , you should know that Treasuries are the topic of our foc...
Thu, Oct 15 2009, 4:15 PM
Lots of reason to believe the 10yr will be testing 3.50% tomorrow. All week the 10yr yield has has pushed higher and higher in the range. What's going...
Thu, Oct 15 2009, 1:34 PM
The FN 4.0 is currently -0-11 at 97-26 yielding 4.2248% and the FN 4.5 is trading -0-11 at 100-17 yielding 4.4376%. The secondary market current coupo...
Wed, Oct 14 2009, 11:40 AM
The FN 4.0 is trading -0-10 at 98-12 yielding 4.1681% and the FN 4.5 is -0-07 at 100-30 yielding 4.387%. The secondary market current coupon is 4.299%...
Wed, Oct 14 2009, 8:30 AM
September Retail Sales Data was just released...it was better than expected. The bond market, which was already weaker after JP Morgan earnings beat e...
Wed, Oct 14 2009, 6:20 PM
The FN 4.0 closed -0-17 at 98-04+ yielding 4.19% and the FN 4.5 closed -0-09+ at 100-28 yielding 4.397%. The secondary market current coupon is 4.313%...
Wed, Oct 14 2009, 2:31 PM
Plain and Simple: FOMC members have mixed outlooks on the residential real estate market and the proper exit from the Agency MBS Purchase Program. The...
Tue, Oct 13 2009, 11:42 AM
Positive progress has been made all morning in the rates market, however as traders start to search for the lunch cart...stocks are heading higher and...
Tue, Oct 13 2009, 8:22 AM
The November FN 4.0 is trading +0-10 at 98-24 yielding 4.1307%. The November FN 4.5 is trading +0-09 at 101-06 yielding 4.3560%. The secondary market ...
Tue, Oct 13 2009, 5:16 PM
Over the summer we coined a new term based on the bouncy price action occurring in financial markets: CHOPATILITY. The lack of meaningful market direc...
Tue, Oct 13 2009, 4:13 PM
Heading into the 5pm "RATE SHEETS ARE UNCHANGED" marking period, rate sheet influential MBS coupons have given back a portion of their early afternoon...
Tue, Oct 13 2009, 2:54 PM
Rates rallied out the gate this morning. However, later in the day stocks began to recover losses and benchmark TSY and "rate sheet influential" MBS c...
Fri, Oct 9 2009, 10:14 AM
The FN 4.5 just made a new intraday low as the 10yr ticked over 3.32. The rate sheets we have seen were already noticeably worse than yesterday, howev...
Fri, Oct 9 2009, 8:38 AM
# After open weaker, MBS and tsy's are slightly improved AM
# Should clarify for tsy's "improved" only vs. overnight and early AM session. unchanged...
Fri, Oct 9 2009, 4:47 PM
AHHHH....the FN 4.5 fell off the map at the end of the day!!!!HAHA...this joke never gets old. DONT PANIC. TODAY IS NOTIFICATION DAY (dont panic about...
Fri, Oct 9 2009, 1:12 PM
The aftermath of yesterday's duration shedding which has carried over into today: LOTS OF REPRICES FOR THE WORSE AND HIGHER MORTGAGE RATES. The FN 4.0...
Thu, Oct 8 2009, 11:18 AM
Despite better than expected jobless claims data, proof that business inventories are still contracting, improving retail sales, a weaker dollar, anot...
Thu, Oct 8 2009, 8:33 AM
The 10yr TSY yield initially spiked higher after jobless claims data...however selling slowed as yields bounced at 3.21%.Rate sheet influential MBS co...
Thu, Oct 8 2009, 6:54 PM
After the dust settled today, the 30yr bond was down over a point today whereas 4.5 MBS had only lost 3 ticks... There was plenty of sturm and drang ...
Thu, Oct 8 2009, 4:11 PM
The FN 4.0 is currently -0-05 at 99-18 yielding 4.050%. The FN 4.5 is currently -0-02 at 101-27 yielding 4.275%. The secondary market current coupon i...
Thu, Oct 8 2009, 1:23 PM
As markets are given some more time to digest and show their hand, the bond bears are doing battle with trade flow considerations we discussed in MBS ...
Thu, Oct 8 2009, 1:01 PM
30 year bond auction results...
* $12 BLN 29-YEAR 10-MONTH BONDS AT HIGH YIELD 4.009 PCT, AWARDS 27.53 PCT OF BIDS AT HIGH
* BID-TO-COVER ...
Wed, Oct 7 2009, 12:12 PM
Prepayment speeds determine, to a great extent, the timing of principle cash flows back to the MBS investor. If forecasts of prepayment speeds are mi...
Wed, Oct 7 2009, 9:01 AM
The US dollar is recovering after taking a beating in currency markets yesterday. As the dollar gains against other currencies, oil and gold prices ar...
Wed, Oct 7 2009, 5:00 PM
When last week's NFP hit, the massive rally of the day before was confirmed. Volume was as high as it has been in a long time on both days. As you c...
Wed, Oct 7 2009, 4:06 PM
In NASCAR the GREEN flag signals the start or resumption of the race. A GREEN flag tells drivers to floor it! In the bond market, GREEN on the board m...
Wed, Oct 7 2009, 1:34 PM
OK, the auction of the 10yr re-opening was fantastic... In case you missed the results or were otherwise in need of a bit more explanation as to thei...
Wed, Oct 7 2009, 1:01 PM
* $20 BLN 9-YR 10-MO NOTES AT HIGH YIELD 3.210 PCT, 12.77 PCT OF BIDS AT HIGH
* BID-TO-COVER RATIO 3.01, NON-COMP BIDS $41.9 MLN
* PRIMAR...
Tue, Oct 6 2009, 12:21 PM
The nitty gritty you need to take from this post:
* TSY supply/auctions, a lack of econ data, and the stock lever are influencing mortgage rate...
Tue, Oct 6 2009, 8:45 AM
Good Morning. Prices of "Rate Sheet Influential" MBS coupons are marginally lower this morning as benchmark yields rise ahead of TSY auctions. An unex...
Tue, Oct 6 2009, 5:02 PM
3.27 and 3.30 have proven to be pivotal technical price levels in 10yr tsy yields. After rallying last week, all eyes have been on these levels to se...
Tue, Oct 6 2009, 3:51 PM
Rate sheet influential MBS coupons stuck to a tight price range today. The Federal Reserve and Asian accounts were aggressive buyers of FN 5.0s today...
Tue, Oct 6 2009, 1:14 PM
One of our colleagues put it best a moment ago when he said: "looks like the market isn't moving much... Headed to lunch..."
Indeed after an excee...
Tue, Oct 6 2009, 1:00 PM
Bottom Line: not exceedingly strong, but not horrible. However, initial reaction in bond markets is to the downside. MBS are off a few ticks to 101-...
Mon, Oct 5 2009, 11:42 AM
We've been talking more and more about the "paradigm shift" occurring in the broader markets. In general, mounting evidence suggests that the equitie...
Mon, Oct 5 2009, 10:11 AM
ISM Non Manufacturing Survey Results-
* headline index at 50.9% versus 50.0 Consensus
* business activity index 55.1 in sept (consensus 51...
Mon, Oct 5 2009, 8:29 AM
So Far This Am...
* Dollar Falls After G7 Meeting.
* "Strong Dollar" talk may have contributed to bond rallies last week
* MBS mostly...
Mon, Oct 5 2009, 5:08 PM
TOMORROW! With today's lack of data and ultimately, movement, tomorrow's impending events trump today's actual events (or lack thereof...).
Ok, I ...
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