The AM So Far...
- Reconnection to fundamentals
- Data driving markets once again
- Tsy yields backed up big time overnight and this AM, MBS got as low as PAR
- PPI and Housing starts halted the losses, 4.5's now at 100-03
- No definitive suggestion on how to approach today yet...bonds back in "wait and see" mode
Recap of Previous Session
- Monday AM Rally Extends Friday's Gains
- But the range showed more of a ceiling than a linear extension.
- look for some correlation of YSP to prices, then increase lock predisposition
- Fed Senior Loan Officer Survey showed improvement in lending terms. Although Banks still tightening credit, fewer are doing so compared to Jan-April period. Residential prime had best improvement with only 22% of banks tightening terms. Commerical real estate was worst with 46% of banks tightening credit.
- Fed cuts two investment managers from MBS purchase program. Wellington Management retained for trading and settlement. Blackrock keeps job as risk manager. This was expected move as NY Fed is becoming more familiar with the investment program.
- Credit card delinquencies down for fourth consecutive month
- TALF extended into 2010. Applies to newly issued ABS and legacy CMBS.
In The Time It Takes To Type... (NEW!)
- sideways... Still at 100-03
MBS Market Alerts
