MBS Live: MBS Morning Market Summary
MBS and Treasuries both hit their all-time strongest levels early this morning with 10's dipping to 1.399 and Fannie 3.0's as high as 104-11. The onset of the domestic session brought some moderation with it, but it could be argued that cues for that were already in place from the bottoming out of German Bund yields at 1.128--a level they hit several times overnight. Without any scheduled economic data, the Fed's scheduled "operations Twist" buying has been the major mover of the morning, further reinforcing a move away from record levels as dealers submitted much more than the Fed could buy, and in fact, implied an overabundance of supply. MBS and Treasuries are moving to their worst levels of the morning following the buyback details.
MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
|
|
|
||||||||||||
| Pricing as of 11:09 AM EST | ||||||||||||||
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.
9:28AM :
ALERT ISSUED:
Bond Markets Continue Trading Near All-Time Levels
The overnight session saw 10yr yields fall to all-time lows as the Europe crisis spirals further into the abyss. The main headline motivator is a request for government assistance by yet another regional Spanish government. Headlines were generally gloomy and plentiful as well resulting in 10's dropping to 1.399 at their lows. German Bunds seem to have set the resistance level at their new all-time lows of 1.128
MBS opened well into all-time highs and have moved up a few ticks from there with Fannie 3.0's at 104-08 and Fannie 3.5's at 106-09. Bond markets may in a bit of "bounce mode" now though as German Bunds are almost back to 1.15, closing in on a 1.155 pivot point from Friday's lows.
There is no scheduled economic data likely to move markets today except perhaps the 10:15am-11:00am scheduled Fed "Twist" buying. That usually constitutes more of an "adjustment" to trading levels rather than motivation to change preexisting trading patterns.
With Spain slowly eroding from the inside out, Italy seen to be "up next," and EU Officials increasingly comfortable with the idea of a Greek exit, major cues for Bond markets continue to come from Europe, although the start to this week likely fuels expectations for an incrementally more austere FOMC Meeting and Announcement next week.
MBS opened well into all-time highs and have moved up a few ticks from there with Fannie 3.0's at 104-08 and Fannie 3.5's at 106-09. Bond markets may in a bit of "bounce mode" now though as German Bunds are almost back to 1.15, closing in on a 1.155 pivot point from Friday's lows.
There is no scheduled economic data likely to move markets today except perhaps the 10:15am-11:00am scheduled Fed "Twist" buying. That usually constitutes more of an "adjustment" to trading levels rather than motivation to change preexisting trading patterns.
With Spain slowly eroding from the inside out, Italy seen to be "up next," and EU Officials increasingly comfortable with the idea of a Greek exit, major cues for Bond markets continue to come from Europe, although the start to this week likely fuels expectations for an incrementally more austere FOMC Meeting and Announcement next week.
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.
Matthew Graham : "RTRS - DEALERS SUBMITTED $19.98 BLN OF TREASURIES FOR CONSIDERATION IN FED PURCHASE -NY FED "
Matthew Graham : "RTRS - FED BOUGHT $4.78 BILLION OF TREASURIES MATURING BETWEEN JULY 2018 AND JUNE 2019 -NY FED"
Andrew Russell : "I wouldnt risk it"
Andrew Russell : "Scott, I would assume yes, so they make sure you dont have collusion"
Scott Valins : "Gm all. Do I have to go through HVCC management company when ordering appraisal to prove that there is 30% equity for vacated primary residence?"
Matthew Graham : "RTRS- MONTI SAYS PUTIN ASSURED HIM AT THEIR TALKS THAT RUSSIA HAS NO INTENTION OF REDUCING THE SHARE OF EUROS IN ITS RESERVES "
Matthew Graham : "RTRS - MONTI SAYS WOULD BE HELPFUL IF ECB INJECTED FRESH FUNDS INTO EURO-ZONE ECONOMY, BUT TIME NOT YET RIGHT "
Ira Selwin : "Looks like some rates delayed this am"
Andrew Horowitz : "new motto "sell more olives""
Matt Hodges : "no, no, the IMF has convinced all Greek citizens to halt their tax evasion. It's solved"
Matthew Graham : "This then, will finally be THE THING that "fixes" Greece! Thank goodness, and thanks IMF! [/sarcasm]"
Matthew Graham : "RTRS - IMF SAYS WILL START DISCUSSIONS WITH GREEK AUTHORITIES ON JULY 24 ON HOW TO BRING GREECE'S ECONOMIC PROGRAM BACK ON TRACK "
Andrew Benson : "more green. wow."
Victor Burek : "Spain is banning all short selling on all stocks for 3 months"
B-C : "and Spain needing a bailout, like that is new news?"
Victor Burek : "much more talk over weekend about Greece exiting euro"
Matt Hodges : "meanwhile Germany 1 year negative yield"
Matt Hodges : "Spain is the latest crisis - 2 - 30 year bonds all yielding upper 6 to low 7s"
Sung Kim : "lump it in with China';s fake econmic numbers"
Sung Kim : "its all a lie"
Daniel Kramer : "1.40? Is this a mistake?"
Read what our user's have to say about MBS Live on LinkedIn.
» Start a two week free trial of MBS Live.
MBS Market Alerts
