MBS ALERT: Abrupt Fall From Intraday Highs
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I went to make an english muffin and some oatmeal and I came back to this....prices had fallen 8 ticks!!!
The S&P opened considerably lower but bounced at 980 and immediately began retesting the all important 990 level. We need 990 to prove firm resistance if the TSY rally is to gain momentum. In MBS world, retail selling is pushing yields spreads wider and wider...currently we have gapped out 6 ticks against benchmark TSYs. MBS is still getting butt whipped by TSYs!
I know a few lenders have already published rate sheets. BEWARE of a recall! Other lenders will likely hold pricing until the market finds stable footing.