5 pm "Going Out" Marks....

FN30_______________________________

FN 4.0 -------->>>> +0-10  to 100-06  from 99-28

FN 4.5 -------->>>> +0-10  to 101-29  from 101-19

FN 5.0 -------->>>> +0-08  to 103-06  from 102-30

FN 5.5 -------->>>> +0-08  to 104-00  from 103-25

FN 6.0 -------->>>> +0-06  to 104-25 from 104-19

GN30________________________________

GN 4.0 -------->>>> +0-11  to 100-09  from 99-30

GN 4.5 -------->>>> +0-11  to 102-03 from 101-24

GN 5.0 -------->>>> +0-08  to 103-23  from 103-15

GN 5.5 -------->>>> +0-07  to 104-09 from 104-02

GN 6.0 -------->>>> +0-04  to 104-24 from 104-21

MBS prices continued to push higher throughout the day. The FN 4.5 coupon traded in an aesthetically pleasing upward trend channel (higher highs and higher lows) with only short periods of consolidation (yellow circles)

The stack's slow and steady strut higher allowed a few lenders to improve rate sheets...but not as many as one would normally expect. MBS/TSY yield spreads moved tighter and tighter as the day progressed. Yield spreads were at their narrowest levels near the 3pm close. MBS grew stronger in relative value and absolute dollar prices!!! You are due some YSP.....

Tighter yield spreads = healthy MBS demand. Strengthening MBS is not of much surprise when  you consider the excess liquidity within the mortgage market. Traders have been able to churn profits while the Fed keeps MBS market volatility low and provides demand side support that far exceeds the offered supply of new loans. (Supply is the enemy of expensive production MBS. New supply from mortgage bankers has been limited this week...about half as much as last week's average).

MBS coupon yields managed to move lower  all while the yield curve barely budged. 2s vs. 10s flattened by less than 1 bp.  The 2 yr  note yield moved from 0.96 to 0.91. The 10 yr note yield fell 4 bps from 2.93 to 2.89. The 30 year bond was unchanged at 3.72.

 

I was planning on explaining the supportive events that occur at the beginning of the month...however my better half has informed me that if I work past 730 again she is going to "beat me senseless in my sleep". So...in the interests of a pleasant evening and productive morning I will allow the whip to crack tonight (and only tonight!) :-D

Tomorrow morning I will shed some light on the "supportive" buying activities that occur early in the month....get your thinking cap warmed up!

DU REFI PLUS LENDER UPDATE: Wells Fargo, Suntrust, Countrywide, Chase, M&T, Citi, Everbank, Met Life, BoA, Flagstar, Amtrust. If you know of another lender please share HERE.