MBS Live: MBS Morning Market Summary
Bond markets are just slightly weaker so far today, but in general, have held a narrow, sideways range, well within the highs and lows seen Wednesday. This is the sort of post-Thanksgiving Friday trading session that markets typically set out to have, barring unforeseen considerations: a slow grind toward the early close with minimal disruptions. This will almost certainly be the lowest volume day of the year (though December 24th or 26th may take that title). As a reminder, markets close at 2pm Eastern time.
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.
9:23AM :
Bond Markets Slightly Weaker; Very Light Activity
Unsurprisingly, there is not a lot going on today for bond markets and MBS. The light volume means that anyone left trading now comprises a bigger piece of the overall market, thus making it easier to push prices around. That's resulted in losses so far today.
Essentially nothing happened for Treasuries throughout the overnight session. After closing at 2.74 (10yr yields) on Wednesday, they traded between there and 2.76 overnight. Right around 8:30am, a larger block sale came through in Treasuries futures, kicking off a run to 2.766.
Such a market mover would be counted in the category we refer to as "tradeflow considerations." Every time the end of the month rolls around, various accounts are compelled to buy and sell certain amounts of certain securities to meet month-end portfolio requirements. There's no special list that tells us how much of that has already happened, but observation and logic suggest "more than usual" for the last day of the month. The net effect is that we're missing out on the mild, persistent, supportive buying that we sometimes see. It's possible some of that is waiting in the wings for later in the morning, but we won't know unless/until it happens.
MBS aren't much worse for the wear, only down 2 ticks in Fannie 3.5s to 100-26. Fannie 4.0s are down 104-09. There are no relevant headline or data considerations on the calendar for the rest of the day, and bond markets close early at 2pm.
Essentially nothing happened for Treasuries throughout the overnight session. After closing at 2.74 (10yr yields) on Wednesday, they traded between there and 2.76 overnight. Right around 8:30am, a larger block sale came through in Treasuries futures, kicking off a run to 2.766.
Such a market mover would be counted in the category we refer to as "tradeflow considerations." Every time the end of the month rolls around, various accounts are compelled to buy and sell certain amounts of certain securities to meet month-end portfolio requirements. There's no special list that tells us how much of that has already happened, but observation and logic suggest "more than usual" for the last day of the month. The net effect is that we're missing out on the mild, persistent, supportive buying that we sometimes see. It's possible some of that is waiting in the wings for later in the morning, but we won't know unless/until it happens.
MBS aren't much worse for the wear, only down 2 ticks in Fannie 3.5s to 100-26. Fannie 4.0s are down 104-09. There are no relevant headline or data considerations on the calendar for the rest of the day, and bond markets close early at 2pm.
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.
David Lurvey : "Dustin, we have done DU Refi Plus with previous being LPMI. You still need to get Cert transferred from current MI company."
Ken Crute : "if its lender paid monthly will need to be converted to borrower paid monthly "
Roger Moore : "if it is still actually paid on a monthly basis, i'm not as positive, but I have not run into any issues with 5/3rd or Quicken"
Roger Moore : "we usually use quicken wholesale"
Roger Moore : "yes, I've done those many times"
Dustin McAlister : "trying to figure out how we do it on new loan, can't charge new mi since ltv is 115% but how would the lender paid mi still happen with new servicer? looking in allregs for something"
Ted Rood : "I used to at Met, Dustin, but was same servicer, imagine not your situation."
Dustin McAlister : "has anyone done a du refi plus with lender paid PMI on the previous loan?"
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