Positive progress has been made all morning in the rates market, however as traders start to search for the lunch cart...stocks are heading higher and benchmark Treasuries and "rate sheet influential" MBS coupons are suffering because of it.
In the past 10 minutes the S&P hit an intraday high of 1076, the 10yr TSY note rose from 3.30% to 3.34%, and the FN 4.5 fell five ticks to 101-04.
DONT PANIC...we are not in ALERT MODE yet, the previously discussed rates range is indeed moderating the market...
By the way if you are looking for the technical significance of 3.34%...its the 21 day moving average. 3.38% is the 40 day moving average.
We will alert if range bound support is broken and reprices for the worse become an imminent concern. After reading MBS OPEN we hope you are feeling extra defensive of the chances for a loss of rate sheet rebate in the future.
MBS Market Alerts
