Early in the session stocks showed signs of weakness, giving TSY and "rate sheet influential" MBS coupons an opportunity to rally to the highs of the day. Unfortunately, as stocks began to meander off intraday lows, the long end of the yield curve started selling off..eventually selling pressure pushed TSY prices to levels not seen since late June.
Consequently....MBS prices fell and lenders REPRICED FOR THE WORSE. Volatility remains your best friend and worst enemy. The FN 4.5 has stabilized near session lows...
Day Trader's Delight.
MBS Market Alerts
