After being down as much 11/32 this morning, rate sheet influential MBS coupons just went flat on the day.
The FN 4.0 is trading +0-00 at 98-05 yielding 4.190% while the FN 4.5 is +0-00 at 100-27 yielding 4.399%. The secondary market current coupon is 4.336%.
Considering the improvements in the secondary market, you are likely looking for a little more reprice for the better love from lenders...don't hold your breath for more rebate than you've already gotten today. While prices are 11 ticks off the lows of the day and 8 ticks higher from the level where many lenders republished pricing, I don't see much incentive to pass along more bps right now. Barring another late afternoon stock sell off, it would appear that we've seen the best MBS prices of the day...which implies there is only room to move lower. I could be wrong though...
Here is the FN 4.5 two day...
Mostly thanks to a continued lack of new production MBS supply and the heavy lifting efforts of the Federal Reserve (not as heavy lately), rate sheet influential MBS coupon yield spreads are tighter today. The current coupon yield is now 92.8bps over the 10yr TSY yield while the FN 4.5 yield is 99.1bps above the 10yr TSY and 81.4 bps higher than the 10yr swap rate.
Not much action to report in terms of MBS trading flows.
After a few days of slow Up in Coupon trading, we are seeing some renewed interest in fuller MBS coupons. This has been an ongoing event since February, not really anything new to us. At the moment it wont have much effect on mortgage rates thanks to....LIGHT SUPPLY and FEDERAL RESERVE SUPPORT (yawn)..
I think I am reaching for content here...its a slow one in TBA MBS world.