The reprice alert siren has been turned off for now.
The FN 4.5 bounced at 100-28 and is now currently trading +10/32 at 101-00...off the highs of the day.
Chopitility persists heading into 1pm bond auction. Stay alert...stocks are testing new 2009 highs...
The Treasury Department will reopen the 8/2039 long bond at 1pm. $12 billion will be offered. The "When Issued" is currently trading at 4.273.
Here are the results of previous auctions:
While yesterdays turnout at the 10 yr auction is encouraging for the 30 yr and the previous two auctions this week have failed to cause much of a problem for "rate sheet influential" MBS coupons....we are more nervous about this auction's ability to shift the yield curve and thus bring about some choppiness in MBS coupons. Look for us to play "follow the leader" with benchmark big brother TSYs.
MBS Market Alerts
