MBS Live: MBS Afternoon Market Summary
Stocks and bonds both approved of Yellen's confirmation hearing today.  She put on a clinic for the Senate Banking Committee and deftly navigated their labyrinth of inanity.  Truly, she deserves credit for keeping a straight face after being stared down by Senator Shelby asking if the the Fed is just like China "buying our paper."  Treasuries and MBS shot to their best levels of the day during and immediately after the testimony, but softened a bit into the 2pm hour.  The damage was minimal, though several lenders did reprice negatively.  MBS rose again heading into the close, and a few lenders repriced positively as a result. 
MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
FNMA 3.0
97-06 : +0-05
FNMA 3.5
101-14 : +0-07
FNMA 4.0
104-21 : +0-05
FNMA 4.5
106-32 : +0-04
GNMA 3.0
98-10 : +0-09
GNMA 3.5
102-13 : +0-07
GNMA 4.0
105-15 : +0-07
GNMA 4.5
107-18 : +0-07
FHLMC 3.0
96-25 : +0-06
FHLMC 3.5
101-04 : +0-07
FHLMC 4.0
104-10 : +0-06
FHLMC 4.5
106-22 : +0-04
Pricing as of 4:04 PM EST
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.
2:57PM  :  Prices Holding Ground; Reprice Risk Fades
No sooner had the earlier alert come out than prices began finding their footing. While we did get a few negative reprices on that weakness, we're back near the day's better levels. Fannie 3.5s are up 5 ticks at 101-12 and 10yr yields are down to 2.7052.
1:57PM  :  ALERT ISSUED: Negative Reprice Risk Increasing For Some Lenders; Gains Evaporate
In rather undramatic fashion, MBS have leaked back to unchanged levels since topping out at 11:20am. Fannie 3.5s are down from 101-15 to 101-07. 10yr yields have risen from 2.685 to 2.73. Negative reprice risk is moderately higher, though not severe by any means as most lenders are still on rate sheets that came out when prices were lower this morning.
1:10PM  :  Limited MBS Reaction to Weak 30yr Bond Auction
Today's 30yr Bond Auction was quite weak, with demand at the low end of its recent range and the yield award coming in higher than expected by about 1.4bps. Despite that, MBS and 10yr Treasuries have held their ground fairly well. Fannie 3.5s have only given up 2 ticks and 10's are less than a bp higher currently. This isn't enough to introduce any negative reprice risk.
11:37AM  :  MBS at New Highs as Yellen Q&A Progresses; Positive Reprice Potential
The first positive reprice has already been reported and additional reprices aren't out of the question as MBS have stretched into new highs. Fannie 3.5s are up 5 ticks on the day at 101-12. 10yr yields were as low as 2.685 but are back up to 2.698 at the moment.
11:23AM  :  ALERT ISSUED: MBS at Highs: Positive Reprice Potential
Market is reacting favorably to Janet Yellen testimony. FNMA 3.5 at the highs of the day at 101-14. Lenders who released rate sheets are in a position to reprice for the better.
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- U.S. 30-year bond BID-TO-COVER RATIO 2.16, NON-COMP BIDS $15.49 MLN "
Matthew Graham  :  "RTRS- U.S. SELLS $16 BLN 30-YEAR BONDS AT HIGH YIELD 3.810 PCT, AWARDS 73.59 PCT OF BIDS AT HIGH "
Matthew Graham  :  "30yr Auction expectations running around 3.796-3.797. Last few bid-to-cover readings have ranged from 2.11 to 2.53 (through March). "
Andy Pada  :  "Just got some info from Fannie that there are approximately 1.3 Million Fannie Mae loans eligible for HARP"
Jason Anker  :  "oh well that woudl fall under septic system repair and you'd be fine."
Ted Rood  :  "Even if they are sole bathrooms for property?"
Jason Anker  :  "203k says no "out buildings" can be improved"
Scott Valins  :  "hey FPH I think I closed one w Plaza last year. Checking it out"
FPH  :  "SV can you send me any infor you have on a detached 2nd unit on a 203k. I am getting much resistance. "
Christopher Stevens  :  "Yellen is doing a fantastic job. Not one stumble."
Matthew Graham  :  "The real rate is published, fwiw. It comes out at the same time as the mainstream U3. It's all right here, every month: http://www.bls.gov/news.release/empsit.t15.htm"
Nathan Stotlar  :  "25"
Mario Ingraffia  :  "Question 3 unit owner occupied purchase...Does Freddie allow this with 20 percent down, or 25 like fannie?"
Troy Evans  :  "Last time I checked, the Fed doesn't run the BLS"
Troy Evans  :  "Cracks me up each time they try and act like the Fed is who decides what is considered in the employment data. "
Dustin McAlister  :  "real ue rate, shoot its like 30% but we like to publish a fictional number....did she really think that was the answer she was going to get? "
Tom Schwab MLO-77107  :  "REPRICE: 11:33 AM - Franklin American Better"
Adam Dahill  :  "I believe it's hvcc compliant for Fannie "
Dan Clifton  :  "Scott, some lenders will accept an AVM as well, check your guides"
Scott Valins  :  "appraisals being done to prove 25% equity on vacated property can be done by any appraiser and doesn't have to be HVCC compliant correct?"
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