At 1:23 PM we hit highs of the day at 100-26. Since then we're back down in a range that defines the lows of the afternoon which also coincide with the highs from yesterday. Overall, this is an 8 tick loss from the highest highs. That's the kind of situation where past precedent seems to remind us to look at how aggressive our lenders have been with passing those gains on. The other price spike this AM came right after the 11 o'clock hour and hit 100-25. Not a high liklihood here, but we've seen it happen in the past on rare occasions. All that said, we're still 4 ticks up on the day with 4.5's at 100-19.
Also of interest might be the threefold encounters the 10yr curve has had with 3.46, each time failing to break through the resistance that served as suych a strong floor recently. The 1000 level in the S&P seems like the floor to watch for today as it was off that bounce that the mid morning downtrend in stocks was first broken. As we type, recent losses in MBS appear to be moderating in that 100-19 range. Closing resistance at 100-20 is reasonably firm.
MBS Market Alerts
