Quick Update while we write juicy content....
Since 5pm "Going Out" Marks...
FN30________________________________
FN 4.0 -------->>>> +0-02 to 100-12 from 100-10
FN 4.5 -------->>>> +0-00 to 102-01 from 102-01
FN 5.0 -------->>>> +0-01 to 103-02 from 103-01
FN 5.5 -------->>>> +0-03 to 103-25 from 103-22
FN 6.0 -------->>>> +0-01 to 104-21 from 104-20
GN30________________________________
GN 4.0 -------->>>> +0-00 to 100-14 from 100-14
GN 4.5 -------->>>> +0-00 to 102-09 from 102-09
GN 5.0 -------->>>> +0-02 to 103-23 from 103-21
GN 5.5 -------->>>> +0-02 to 104-00 from 103-30
GN 6.0 -------->>>> +0-01 to 104-15 from 104-14
Prices of mortgage backed securities have bounced around yet another tight range this morning as markets, stock and bond alike, place their bets on the possible outcomes of today's FOMC statement.
Based on the morning price action and trading flows...the MBS stack is indicating it wants to go higher (fixed income buyers speculate the FOMC may include bond positive verbiage/new policy). But then again stocks are pushing higher and higher....hmmmm.....it appears that perhaps we are in for an interesting dichotomy this morning. Higher stocks and higher bond prices to come?
Mortgage bankers offloaded a considerable amount ($5bn = considerable) of new forward commitments to the TBA MBS market yesterday...this implies that upcoming rate sheet adjustments will be made based on yesterday's MBS prices.
Markets may be hesitant/jumpy leading up to the release of the FOMC statement....so keep your eyes peeled for any alerts we may send your way (GOOD or BAD)