MBS Live: MBS Morning Market Summary
Although we threw a Hail Mary pass in the hopes of getting saved by Murphy's Law, bond markets have no detectable pulse yet again today. In a few more hours, the deal will be sealed, and we will officially be able to fully regret not acting on the instinct to declare the current week a 5-day bond market holiday. That's what it's been! MBS too! 103-15 to 103-18 range! Seriously! 3 Ticks! We'll probably try to find another few lines to fill this space for the MBS RECAP tonight, but if we don't see you again before Monday, have a great weekend! Just remember next week is completely different... Treasury Auctions, FOMC Announcement, Bernanke, Q1 GDP, and the list goes on... The stored energy of the past two weeks will very likely break out in one direction or another.
MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
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Morning Reprice Alerts and Updates
Below is a recap of instant Reprice Alerts and updates issued via email and text alert to MBS Live subscribers this morning.
9:31AM :
ALERT ISSUED:
Bond Markets Holding Ground After Opening Slightly Weaker
After a decent little stampede to the stronger side of the recent range yesterday, where else for well-behaved bond markets to go but back in the other direction? Tricky people will mention things like Germany's IFO business confidence index, China cutting it's required reserve ratio, or possibly even UK Retail Sales, but it's all merely a way to justify that which now seems destined to have happened for several weeks now.
The overnight "risk-on" events (or simply, "the range" bouncing) took 10yr yields close to 2% into the domestic session and saw MBS open down a few ticks at 103-14 in Fannie 3.5's. Both have since bounced because, let's face it, when the range has been this narrow, you might as well try to make it even narrower so you can at least feel like you're doing something.
The bounces haven't been epic, but Fannie 3.5 MBS have been back and forth around 103-16 by a tick or two. 10yr yields are in the high 1.98's. And the calendar for the rest of the day is absolutely empty. Perhaps one of the EU officials visiting the states today will say something that markets react to. We'll be sure to keep you apprised of that situation just as fast we can type the name Schaeuble (so, not very fast, I guess. Maybe we'll copy that to the clipboard just in case...)
The overnight "risk-on" events (or simply, "the range" bouncing) took 10yr yields close to 2% into the domestic session and saw MBS open down a few ticks at 103-14 in Fannie 3.5's. Both have since bounced because, let's face it, when the range has been this narrow, you might as well try to make it even narrower so you can at least feel like you're doing something.
The bounces haven't been epic, but Fannie 3.5 MBS have been back and forth around 103-16 by a tick or two. 10yr yields are in the high 1.98's. And the calendar for the rest of the day is absolutely empty. Perhaps one of the EU officials visiting the states today will say something that markets react to. We'll be sure to keep you apprised of that situation just as fast we can type the name Schaeuble (so, not very fast, I guess. Maybe we'll copy that to the clipboard just in case...)
Live Chat Featured Comments
A recap of the featured comments from the MBS Live Dashboard's Live Chat feature, utilized by hundreds of industry professionals each day.
Brent Borcherding : "No Kidding: Fears Rise That Recovery May Falter in the Spring
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Matt Hodges : "51% is technically correct, but most lenders overlay at 70"
Tom Sawyer : "But my Underwritter is sayin 70?"
Tom Sawyer : "I keep getting 2 answers, our secondary is telling me 51%?"
Ken Crute : "70/30 "
Tom Sawyer : "Does anybody know what the owner occupancy has to be on an existing condo, conventional loan."
MC : "Absurd Underwriting comment of the day: (so far!). “Based on documentation provided it appears that property was sold on 1/26/2012 from AMHS to Freddie. If this is the case loan will be ineligible for financing due to insufficient seasoning.” So Fannie wants Freddie to season their REO’s now? I wish they would at least train these people, even a little! I thought this was hilarious and frustrating all at the same time."
Victor Burek : "i dont like locking on Friday"
Andy Pada : "and VB don't you have a theory about Friday locks?"
Victor Burek : "many lenders didnt pass along the gains"
Andy Pada : "We all should have locked in yesterday at 103-22."
Matthew Graham : "if I don't take at least one half-day on the narrowest week of the year, I might get depressed"
Matthew Graham : "that sounds very reasonable and journalistically pithy. You gonna be around for 5-6 hours? and potentially looking for some unpaid, but much appreciated work? "
Paul L. Martin : "The other french guy is against greek style bailouts...but we know the germans run that show"
Matthew Graham : "i don't even know what that would look like. maybe bond-negative on the loss of a 'known.'"
Paul L. Martin : "Has market priced in zarkozy loss?"
Matthew Graham : "i hate using the word chatter, so with no small trepidation, I'd say the chatter seemed to simply make note that it was happening, but no one seems to be reading much into it insofar as it will move markets"
Jeff Anderson : "Gm, team. I hope The Day Ahead didn't jinx us . Haha. Any positioning to be done ahead of first French Pres vote on Sunday?"
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