MBS Live: MBS Morning Market Summary
It's completely dead out there. Sometimes we see days/weeks like this ahead on the calendar and can reasonably assume things will be slow in markets, yet sometimes those days/weeks can still surprise us in terms of movement and volatility. Today IS NOT ONE OF THOSE DAYS. It's every bit the vacation week that it looked to be coming into it. That said, the simple existence of "slowness" doesn't preclude movement in MBS Prices. It just usually makes for a more "drifty" feeling as opposed to "event-driven volatility or directionality." It's a happy coincidence then that today's drifty feeling is in a positive direction with Fannie 3.0's up 5 ticks at 103-21 and 3.5's very close to the 106 handle as well. There's still nothing else significant on the calendar for the rest of the day, and it's getting later and later for there to be a surprise European tape-bomb. Cruise control into the afternoon unless otherwise noted.
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 11:08 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.
9:40AM :
ALERT ISSUED:
Quiet Overnight Session, Quiet Day On Tap, Bond Markets Slightly Improved
Since 12:30pm on Friday, there's an ongoing sense of an overwhelming descent into "slowness." 10yr yields for instance, peaked around that time, and have gently, methodically, and without volatility, drifted vary slightly lower from highs in the 1.59's to 1.551 currently.
Nothing happened overnight and nothing has happened this morning. Really... Even if we try to stretch marginally important news into printable news, there's just nothing motivating trade right now other than a gradual unwinding of Friday's weakness, mitigated perhaps by this week's Treasury auction cycle.
MBS have joined Treasuries in slightly improved territory this morning. After opening flat vs. Friday's closing levels, Fannie 3.0's are now up 4 ticks toe 103-20. Fannie 3.5's are up 3 ticks at 105-29.
Bernanke was on the agenda with a speech this morning, but didn't comment on monetary policy and PIMCO's Gross has a piece in the Financial Times about how "Draghi and Friends Just Want Your Money," discussing the ongoing challenges facing a reentry of private capital into the European periphery. In Gross notes: " private investors are balking – and for what it seems are good reasons – because policy makers’ efforts have been, until now, a day late and a euro short, or more accurately, years late and a trillion euros short."
There's nothing special on tap for the rest of the day although there will be round of Fed "Twist" buying probably marking one of the only actionable events of the day for traders, but not likely for those watching MBS with pipeline protection in mind (Fed buybacks frequently register noticeable volume/movement responses, but infrequently are sufficient to move MBS enough for a reprice).
Nothing happened overnight and nothing has happened this morning. Really... Even if we try to stretch marginally important news into printable news, there's just nothing motivating trade right now other than a gradual unwinding of Friday's weakness, mitigated perhaps by this week's Treasury auction cycle.
MBS have joined Treasuries in slightly improved territory this morning. After opening flat vs. Friday's closing levels, Fannie 3.0's are now up 4 ticks toe 103-20. Fannie 3.5's are up 3 ticks at 105-29.
Bernanke was on the agenda with a speech this morning, but didn't comment on monetary policy and PIMCO's Gross has a piece in the Financial Times about how "Draghi and Friends Just Want Your Money," discussing the ongoing challenges facing a reentry of private capital into the European periphery. In Gross notes: " private investors are balking – and for what it seems are good reasons – because policy makers’ efforts have been, until now, a day late and a euro short, or more accurately, years late and a trillion euros short."
There's nothing special on tap for the rest of the day although there will be round of Fed "Twist" buying probably marking one of the only actionable events of the day for traders, but not likely for those watching MBS with pipeline protection in mind (Fed buybacks frequently register noticeable volume/movement responses, but infrequently are sufficient to move MBS enough for a reprice).
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 : "Twist buying starting: RTRS - - NY FED SAYS BUYING TREASURIES WITH MATURITIES RANGING FROM AUGUST 2020 TO MAY 2022 "
Victor Burek : "i havent seen rates yet, but i am pretty sure they will be better"
Andy Pada : "VB's policy"
Andy Pada : "10/10 - 10 weeks in a row wherein Monday pricing has been better than Friday's pricing."
Matthew Graham : "RTRS- BERNANKE DOES NOT COMMENT ON OUTLOOK FOR MONETARY POLICY IN SPEECH ON ECONOMIC MEASUREMENT "
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
