MBS Live: MBS Morning Market Summary
Without anything else on the calendar and the more significant European-election-inspired convulsions more of an overnight thing, the majority of the morning's movement seems attributable to the scheduled Fed "Twist" buying from 10:15 to 11:00am. MBS and Treasuries hit their best levels during that time and now their outlook in the immediate future is somewhat unclear. The Consumer Credit release is coming up at Noon, and although it's not traditionally a significant market mover, it could register some response owing to the dearth of alternative (read: more meaningful) guidance.
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.
9:56AM :
ALERT ISSUED:
Bond Markets Hold Slightly Improved Levels After EU Elections
It's Greece again... Granted, markets had entertained some possibility that Greece would vote out the leaders who'd been willing to play ball with the austerity measures required for bailouts, but now that possibility looks to be a reality. To make matters slightly more disconcerting, representatives from the parties with parliamentary representation took the podium in the overnight session, basically saying their victory constitutes defeat for austerity measures. Case in point:
RTRS- GREEK LEFT COALITION LEADER TSIPRAS SAYS GERMANY'S MERKEL MUST UNDERSTAND AUSTERITY POLICIES HAS BEEN DEFEATED
RTRS - GREEK DEMOCRATIC LEFT PARTY LEADER KOUVELIS SAYS HIS PARTY WILL NOT SUPPORT AUSTERITY POLICIES
This prompted a flurry of news out of the various Euro-zone officials generally pontificating on the implications of the elections. It's not entirely clear if some of the bolder anti-austerity claims are rooted in reality or simply political pandering, but the fact remains that the pro-bailout crowd is out, and the anti-bailout crowd is in. Even if Greece adheres to the previously inked deal, any future issues will be harder to resolve.
It seems like that's what risk markets are trading this morning, along with somewhat similar results in France and Germany, where those who had been more willing to "play ball" with austerity, have been ousted. 10's made it down to 1.825 overnight, but only briefly. This was a major technical level after the previously visited 1.88%.
MBS continue to struggle making it any higher than previous all-time highs at 104-06 and haven't even tried to approach them this morning. Still, Fannie 3.5's are 3 ticks up on the day at 104-03, making this the most stable show of support at the 104 handle.
There's nothing significant on the schedule of events, though the 10:15-11:00am scheduled Fed "Twist" buying can always cause some volatility. Markets also have to gear up for 3 days of auctions starting tomorrow. That task will likely be balanced by ongoing European headlines considering the dearth of any other market moving data until Thursday.
RTRS- GREEK LEFT COALITION LEADER TSIPRAS SAYS GERMANY'S MERKEL MUST UNDERSTAND AUSTERITY POLICIES HAS BEEN DEFEATED
RTRS - GREEK DEMOCRATIC LEFT PARTY LEADER KOUVELIS SAYS HIS PARTY WILL NOT SUPPORT AUSTERITY POLICIES
This prompted a flurry of news out of the various Euro-zone officials generally pontificating on the implications of the elections. It's not entirely clear if some of the bolder anti-austerity claims are rooted in reality or simply political pandering, but the fact remains that the pro-bailout crowd is out, and the anti-bailout crowd is in. Even if Greece adheres to the previously inked deal, any future issues will be harder to resolve.
It seems like that's what risk markets are trading this morning, along with somewhat similar results in France and Germany, where those who had been more willing to "play ball" with austerity, have been ousted. 10's made it down to 1.825 overnight, but only briefly. This was a major technical level after the previously visited 1.88%.
MBS continue to struggle making it any higher than previous all-time highs at 104-06 and haven't even tried to approach them this morning. Still, Fannie 3.5's are 3 ticks up on the day at 104-03, making this the most stable show of support at the 104 handle.
There's nothing significant on the schedule of events, though the 10:15-11:00am scheduled Fed "Twist" buying can always cause some volatility. Markets also have to gear up for 3 days of auctions starting tomorrow. That task will likely be balanced by ongoing European headlines considering the dearth of any other market moving data until Thursday.
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.
Clayton Sandy : "Wells Freddie is only Wells to Wells. No open access. LTV is unlimited."
Joel Marks : "Yes, only Wells to Wells on Freddie."
Chip Harris : "95% sure it's only Wells to Wells"
Dirk Postupack : "thing with wells is that they might be doing only wells to wells.....you may want to check on that......i dont have notes in front of me......."
Jill Statz : "open access?"
Jason Adams : "WF is 105 LTV on Freddie"
Jill Statz : "does Wells have open access now on the HARP 2.0 for Freddie?"
Dirk Postupack : "Oliver....one thing about recomending 5/3rd right now is that the turn times are soooooooo long.......we have had such a bad experience with them lately that we have cut the off........."
Victor Burek : "plaza is almost .3 worse then friday!"
Matt Hodges : "had Sarkozy upset Hollande, perhaps we'd have red today"
Bert Swyers : "i expected to see a big green day after last nights elections"
Oliver S. Orlicki : "53rd"
Oliver S. Orlicki : "Everbank is"
Grant R. Menard : "So Norcom will not be doing unlimited Freddie Harp 2.0 as of Thursday. Are there any lenders out there doing unlinited LTV/CLTV on Freddie ?"
Brayden Alexander : "JY, I sometimes call the bank first, and see what they call theirs and how many pages it is. That way I know exactly what to tell the borrower to find me."
Jason York : "this customer is having a hard time figuring out what I am asking for, so I am trying to be as exact as possible."
Dirk Postupack : "hey yorkie......I just ask the customer to get the pages that disclose the terms....rate ....period of change etc!"
Matt Hodges : "equity line account agreement and disclosure statement"
Aaron Buyside Meyer : "Mine is called a Home Equity Line of Credit Agreement (which acts as the note outlining terms etc.)"
Jason York : "HELOC's don't have NOTE's correct, what are they called? It is excaping me"
Matthew Graham : "RTRS - PHH-SAYS EXPECTED THAT ABOUT 400 EMPLOYEES FROM HSBC'S MORTGAGE FACILITY IN DEPEW, NEW YORK, WILL TRANSFER TO PHH MORTGAGE "
Matthew Graham : "RTRS- PHH CORP -AGREEMENT EFFECTIVE IMMEDIATELY, AND CONVERSION OF OPERATIONS IS EXPECTED TO BE COMPLETE IN THE FIRST QUARTER OF 2013 "
Matthew Graham : "RTRS- PHH MORTGAGE TO PROVIDE PRIVATE LABEL MORTGAGE SERVICES TO HSBC BANK USA; RELATIONSHIP TO INCLUDE SUBSERVICING OF $52 BILLION OF MORTGAGE LOANS "
Matthew Graham : "I'm not sure if they've had their legs broken before. It might not seem like such a bad option in their view."
Gus Floropoulos : "If I borrowed money from a loan shark, and I didnt have the vig when it was due, I would either get my legs broken, or try to work with the lender, right?"
Gus Floropoulos : "they speak as if they really have a choice"
Matthew Graham : "yeah, I can appreciate that. It'll be interesting to see how the tune changes. Some other official said something about honoring the already-agreed-to austerity, and that the point was not to agree to any more. "
Gus Floropoulos : "MG, Kouvelis wont have a choice, using that rhetoric to get elected"
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