Wed, Aug 19 2009, 3:31 PM
Ok, before you get your hopes up, the use of the word unimaginable was actually a literary device known as sarcasm. You see, under the conventions of...
Wed, Aug 19 2009, 1:03 PM
The stock lever's influence over the bond market has been quite obvious today. After reaching and intraday high of 100-11, we have fallen below 100-00...
Tue, Aug 18 2009, 12:52 PM
Prices of "rate sheet influential" MBS coupons are approaching reprice for the worse zone as the FN 4.5 is now 8 ticks (0-08) off morning price highs....
Tue, Aug 18 2009, 10:44 AM
Yesterday we enjoyed a "flight to quality" induced Treasury rally which lead "rate sheet influential" MBS coupon prices considerably higher. Higher MB...
Tue, Aug 18 2009, 8:36 AM
The AM So Far...
* Reconnection to fundamentals
* Data driving markets once again
* Tsy yields backed up big time overnight and this ...
Tue, Aug 18 2009, 5:10 PM
If one were to look up a definition of range-trading in the Encyclopedia of MG and AQ's Frequently Used Market Jargon, there would not be a standard d...
Tue, Aug 18 2009, 3:56 PM
Hoping a rapid return to fundamentals and the more correlative connection they provide between bond prices and data has today been giving a cautionary...
Tue, Aug 18 2009, 1:45 PM
If you've already seen a reprice for the worse, and additional one here may not be that likely. Conversely, if you HAVE NOT yet received a reprice fo...
Mon, Aug 17 2009, 11:19 AM
The S&P is holding at 980 after a considerable amount of panic selling this morning. The VIX, a read on market volatility, is 3.47 points higher...it ...
Mon, Aug 17 2009, 8:26 AM
The AM So Far...
* Risk averse trade taking over
* Overnight: Stocks Hurting, Dollar stronger, TSY futures Improved, Oil prices tick lower...
Mon, Aug 17 2009, 5:05 PM
As can be seen on the chart, MBS prices faded to black today just a tick under the 100-08 price from our aftertoon commentary. Even if they'd been a ...
Mon, Aug 17 2009, 3:59 PM
As MBS tick towards the close, we've pushed back into the middle (perhaps upper middle?) of the day's range. Risk of reprices for the worse are fadin...
Mon, Aug 17 2009, 1:52 PM
While benchmark TSYs are holding stable in the intraday range, the FN 4.5 is refusing to sustain higher prices. The FN 4.5 is feeling the effects of P...
Fri, Aug 14 2009, 12:34 PM
It's not out of the realm of possibilities to see a few of the more "jumpy" lenders take a few bps of YSP away based on the 8 tick drop that just occ...
Fri, Aug 14 2009, 10:37 AM
This week the Treasury Department successfully auctioned off $75 billion 3s/10s/30s...raising about $14 billion in new cash. So the latest round of au...
Fri, Aug 14 2009, 8:30 AM
The AM So Far...
* CPI Results
o UNCHANGED ( SAME AS CONSENSUS), EXFOOD/ENERGY +0.1 PCT (CONSENSUS +0.1 PCT)
o YEAR-OVER-...
Fri, Aug 14 2009, 5:49 PM
With this week marking what has been the most sincere "pause" in recent equities exuberance, are we FINALLY looking at at least a correction in stocks...
Fri, Aug 14 2009, 2:42 PM
The S&P is recovering a bit...trying to get back to the 1,000 mark. Trading liquidity is official DRIED UP in the bond market...If your lender didnt r...
Thu, Aug 13 2009, 10:35 AM
The Fed didnt offer up much new guidance yesterday, well I dont want to say they totally crapped the bed because they did draw out the end of the TSY ...
Thu, Aug 13 2009, 8:33 AM
The AM So Far...
* 4.5's up 5 ticks to 99-13 after being as low as 98-29
* Stock futures were quasi-soaring and fixed income was hurtin' f...
Thu, Aug 13 2009, 3:31 PM
YAY REPRICES FOR THE BETTER!!!!
Since the results of bond auction were released "rate sheet influential" MBS prices have gone on a tear. The trend ...
Thu, Aug 13 2009, 1:02 PM
Good at first glance....
- high yield at 4.541 with 16.77% at high yield, only 3 bps over current market
- median yield was under current market...
Wed, Aug 12 2009, 9:57 AM
Yesterday weaker stock prices gave bonds the buy signal (wave em in)...today the opposite is occurring as stocks bounce off a familiar support level. ...
Wed, Aug 12 2009, 8:28 AM
The AM So Far...
* 2 ticks up so far in 4.5's to 99-11
* tsy futures testing 21 day moving average, good for bonds
* gains or losses ...
Wed, Aug 12 2009, 3:50 PM
Like we said regarding the 10yr Auction: "the results are not as bad as the 10yr has demonstrated in the first few seconds." And regarding the FOMC S...
Wed, Aug 12 2009, 2:19 PM
* FED SAYS EXTENDS PURCHASES OF LONG-TERM U.S. TREASURY DEBT TO END OF OCTOBER, KEEPS AMOUNT $300 BLN
* TIMING AND AMOUNT OF PURCHASES OF AGENCY ...
Wed, Aug 12 2009, 1:46 PM
Of course all this could go right out the window after the FOMC announcement, but the moderation we expected at 3.75 on the 10yr has occurred and coin...
Wed, Aug 12 2009, 1:01 PM
* high yield of 3.734% with 20.93% at high. exactly with current trading
* Bid To Cover 2.49 - closer to average, last one was the outlier that...
Tue, Aug 11 2009, 12:18 PM
I dont want to say its been a terribly slow morning, there has actually been a pretty decent pace to morning price action in futures trading...however...
Tue, Aug 11 2009, 8:32 AM
The AM So Far...
* 5 ticks up so far in 4.5's to 99-15
* tsy futures flluctuated overnight, but coming of domestic session reversed any lo...
Tue, Aug 11 2009, 6:20 PM
Tomorrow is FOMC Statement day...speculatively we are still waiting for stocks to selloff and note that the long end of the yield curve isnt priced t...
Tue, Aug 11 2009, 3:32 PM
As the close of the markets draws near, tsy's are at their best levels of the day at 3.68, having moved considerabley lower since 2:30 despite a moder...
Tue, Aug 11 2009, 2:14 PM
More to be appended here shortly...
Moderate risk of reprice for the worse as MBS have pushed to their lows of the day as stocks and tsy yields pus...
Tue, Aug 11 2009, 1:01 PM
Initial reaction is positive. Not much change in MBS or Tsy's at the moment. But have seen a few upticks... Jury still out, but so far, muted pre-F...
Mon, Aug 10 2009, 11:15 AM
Rates traders remain very DEFENSIVE of the behavior of stock markets. Fixed income rallies may not last long as market participants sell into strengt...
Mon, Aug 10 2009, 8:23 AM
The AM So Far...
* 7 Ticks up on 4.5's, ticks up on the 10 yr
* 10yr futures above resistance (good)
* Not yet at Friday's opening le...
Mon, Aug 10 2009, 5:09 PM
For one of the only times in the history of the MBS Close, the entire commentary is obviated by the title. With little if any data that anyone really...
Mon, Aug 10 2009, 4:23 PM
With the Fed not expected to offer up any tapebombs and stocks leading TSY prices higher....today was simply a return to status quo, a mini correction...
Mon, Aug 10 2009, 1:40 PM
In and of themselves, today's gains are quite good, with the 4.5 currently up 18 ticks to 99-12. This in fact puts us above Pre- NFP levels including...
Fri, Aug 7 2009, 10:58 AM
After the better than expected NFP print the benchmark 10 yr TSY yield rose over 10bps to 3.88%. The selling pressure was noticeable in futures market...
Fri, Aug 7 2009, 8:30 AM
The only good news this AM is that Today's NFP was indeed the major guidance-giving, market-moving report we've been expecting. Bad News: it's not th...
Fri, Aug 7 2009, 5:17 PM
When all was said and done today, the 4.5 coupon lost just 13 ticks after being as weak as 27 ticks down at one point this AM and 25 ticks down at a r...
Fri, Aug 7 2009, 3:49 PM
Treasuries and Stocks appear to have shown their hand for the day as the close of the stock market approaches. After 3 earnest attempts, the 10yr has...
Fri, Aug 7 2009, 1:33 PM
Activity remains quiet early in the afternoon hours on this summer Friday. The FN 4.5 has moved 11 ticks (11/32) off the lows of the day. Some lenders...
Thu, Aug 6 2009, 10:28 AM
Although this morning stocks moved lower as profit takers set out to time a top before tomorrow's NFP print, fixed income market participants have bee...
Thu, Aug 6 2009, 8:21 AM
The AM So Far...
* 4 ticks up on 4.5's. Currently at 99-14
* BOE announces surprise increase in QE, pound slides
* IF the dollar ben...
Thu, Aug 6 2009, 5:09 PM
Although the give and take wasn't quite as drastic as yesterday's, once again we saw prices travel in a confined range with an almost symmetrical patt...
Thu, Aug 6 2009, 3:46 PM
The Federal Reserve took a break from buying today. Servicers and Originators sold over $4bn "rate sheet influential" MBS today, $2bn of which was ...
Thu, Aug 6 2009, 1:38 PM
The White House today responded to recent questions raised, among other places, by an article in today's Washington Post, about the potential phasing...
Wed, Aug 5 2009, 12:04 PM
In mortgage world, the "rate sheet influential" FN 4.5 has recovered early morning losses and rallied back up to yesterdays range. Although prices hav...
MBS Market Alerts
