The first leg of the quarterely refunding will take place at 1 pm. The Treasury will auction $35bn 3 yr notes. The MBS market is trading in a sluggishly slow manner ahead of the auction which has created some choppy price action (see chart below). The best term I can use to describe the tone on trading desks: bored
Since 5pm "Going Out" Marks....
FN30________________________________
FN 4.0 -------->>>> +0-03 to 100-04 from 100-01
FN 4.5 -------->>>> +0-04 to 101-28 from 101-24
FN 5.0 -------->>>> +0-03 to 102-27 from 102-24
FN 5.5 -------->>>> +0-03 to 103-20 from 103-17
FN 6.0 -------->>>> +0-03 to 104-20 from 104-17
GN30________________________________
GN 4.0 -------->>>> +0-03 to 100-06 from 100-03
GN 4.5 -------->>>> +0-04 to 102-03 from 101-31
GN 5.0 -------->>>> +0-03 to 103-14 from 103-11
GN 5.5 -------->>>> +0-01 to 103-26 from 103-25
GN 6.0 -------->>>> +0-01 to 104-12 from 104-11
UST10YR: 3.1687%
2s/10s: 219.81 bps
DOW: -19.99 to 8406
Will alert if sentiment changes...beyond that we are range bound.
FYI
RE: JP MORGAN CHASE CORRESPONDENT LENDING (kind of redundant when you consider that they don't offer broker channel anymore)
"Chase Correspondent "is making a very significant change to our DU Refi Plus offering and is delaying the implementation of the maximum LTV to 105%. In DU 7.1 May Update Release Notes, Fannie Mae announced the availability of the DU Refi Plus program up to a 105% LTV through DU effective the weekend of May 2, 2009. After careful re-evaluation of the opportunities and risks associated with the DU Refi Plus program, Chase Correspondent Lending will make the following revisions to our DU Refi Plus offering: At this time, Chase will not expand DU Refi Plus to a 105% LTV. Additionally, Chase will now require that the original loan must be Chase Serviced in order to be eligible for delivery to Chase as a DU Refi Plus."
So...this DU REFI PLUS thing is not picking up steam. Its hitting roadblocks...BOOOOO HIIIISSSSS !!!