MBS Live: MBS Afternoon Market Summary
In considering the "stormy morning" referenced in the title of today's recap, it's important to keep in mind that the volatility seen was relegated to Tuesday's range. In other words, the lows and highs of the day for production MBS never went lower or higher than Tuesday's range of prices. That said, they TRIED! Not only that but the vacillations between those highs and lows came in rapid succession this morning with two visits to each side all in the first hour of trade! The afternoon, however, was nothing like the morning. In fact, from 10am on, MBS and bond markets in general completely flattened out to sail toward the Employment Situation Report tomorrow morning.
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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Afternoon 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 afternoon.
1:01PM :
Steady At Stronger Levels Despite Stock Market Bounce
Both MBS and Treasuries are holding their ground well this afternoon, not willing to chase the stock market's bounce back to opening levels. A combination of a worse-than-expected ISM Non-Manufacturing report and the unwinding of some defensiveness as stocks opened lower helped bond markets to their best levels of the day from 9:30 to just after 10am. They've been sideways since then and not much phased by stocks' return to their highs of the day.
Essentially we're seeing markets settle into a pre-NFP groove and thus far, they appear to be filing out the door in an orderly manner. Volume is progressively lower, as is volatility. MBS are near their highs of the day, up 7 ticks in Fannie 3.0s at 102-30 and up 6 ticks in Fannie 3.5's at 105-15. 10yr yields are down to 1.5884 after being as high as 1.624 this morning.
We've seen one positive reprice and wouldn't rule out a few additional reprices if MBS continue holding these levels, but it's largely dependent on the time of the initial rate sheet, with capacity, and general historical aggressiveness playing supporting roles. As such, reprices for the better won't be widespread. More importantly, negative reprices due to MBS movements are not a risk at the moment, though we can't speak to potential "pipeline control" reprices.
Essentially we're seeing markets settle into a pre-NFP groove and thus far, they appear to be filing out the door in an orderly manner. Volume is progressively lower, as is volatility. MBS are near their highs of the day, up 7 ticks in Fannie 3.0s at 102-30 and up 6 ticks in Fannie 3.5's at 105-15. 10yr yields are down to 1.5884 after being as high as 1.624 this morning.
We've seen one positive reprice and wouldn't rule out a few additional reprices if MBS continue holding these levels, but it's largely dependent on the time of the initial rate sheet, with capacity, and general historical aggressiveness playing supporting roles. As such, reprices for the better won't be widespread. More importantly, negative reprices due to MBS movements are not a risk at the moment, though we can't speak to potential "pipeline control" reprices.
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.
Victor Burek : "REPRICE: 3:45 PM - Nexbank Better"
Clayton Sandy : "REPRICE: 2:59 PM - Wells Fargo Better"
Jeff Statz : "Re: the latest Countrywide article in news stream... I think the House Oversight and Government Reform Committee has some catching up to do"
Jeff Anderson : "REPRICE: 2:04 PM - Chase Better"
Jason Harris : "I have been handing this out at application lately"
Jason Harris : "read this articale....www.forbes.com/sites/moneybuilder/2012/03/09/the-perfect-loan-file-2/print/"
Brandon Blue : "REPRICE: 1:38 PM - Interbank Better"
Ira Selwin : "REPRICE: 12:03 PM - Franklin American Better"
Dan Clifton : "REPRICE: 12:02 PM - NYCB Worse"
Jason York : "it jsut counts like any other interested party contribution"
Jason York : "I have it all the time, I am usually fine with just a letter from the Realtor stating they are giving the buyer a credit"
Ryan Shoemaker : "anyone had a real estate agent credit to buyer on a conventional purchase? Need to know if that is done via addendum to purchase agreement signed by seller... or seperate agreement between buyer and agent. Not having any luck getting an answer from UW."
Matthew Graham : "got up to 103-07 in Fannie 3.0s on 6/1 though, so a bit farther off there"
Matthew Graham : "very close. about 3 ticks off in Fannie 3.5's"
Jason Sheaffer : "where are we in relation to all time highs on MBS?"
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