After reaching an intraday high of 102-06, the FN 5.0 has moved back to its long standing resistance price level at 102-00. Meanwhile, the other "rate sheet influential" MBS coupon, the FN 4.5, which we are still not willing to award the current coupon title belt...is feeling the gravitational forces of "parnertia" pulling on prices.
As most market participants have cleaned their stations and left JV desks in charge....there isnt much reason to panic. Nonetheless, as we are 6-8 ticks off price highs, some lenders may REPRICE FOR THE WORSE just to spite you.
2s vs. 10s: 250bps
On a good note...Suntrust will take 125% DU REFI PLUS as of Sept. 1.
MBS Market Alerts
